In 2025, Montenegro’s information and communications technology (ICT) sector experienced a remarkable financial turnaround, with aggregate profits soaring by 93%. Revenue also rose by 12%, while employment figures increased by 14%. This positive trend occurred despite a 19% decline in the number of companies operating within the sector.
The data, released on July 24, 2026, by the Chamber of Economy of Montenegro and the industry association ICT Cortex, highlights the growing significance of technology in an economy traditionally reliant on tourism, construction, real estate investment, and imports. The findings indicate a sector that is not only becoming more profitable but also more concentrated and labor-intensive.
Computer programming remains the predominant activity in terms of company count and employment; however, telecommunications continues to dominate financial performance. Notably, telecom operators make up just 4% of ICT companies yet account for over half of the total sector revenue.
This distinction is crucial as Montenegro develops a more vibrant software and digital services community. Nonetheless, the bulk of ICT revenue still derives from capital-intensive telecom businesses with established subscriber bases and predictable cash flows. Consequently, the substantial profit increase should not be viewed as indicative of widespread growth across all software developers and technology startups.
The analysis employed updated methodologies aligned with revised classifications of economic activities according to OECD standards. While this enhances future international comparisons, caution is advised when juxtaposing current figures with prior studies due to methodological changes.
A smaller business base has led to significantly higher average corporate performance metrics. With sector revenue up by 12% alongside a 19% reduction in company numbers, average revenue per company surged by approximately 38%. Additionally, employment per company rose by about 41%, and average profit per company more than doubled, increasing by around 138%.
The profit growth far outpaced revenue increases, suggesting that profit margins improved by roughly 72% compared to the previous year. Factors contributing to this trend may include operational efficiencies, enhanced utilization of telecom infrastructure, and potentially higher-value software contracts.
However, the decline in company numbers must be interpreted carefully. While it could indicate closures or consolidations, it may also stem from changes in classification methodology. Following a surge in tech-related registrations post-2020—fueled by foreign professionals and businesses relocating—some entities may have had minimal operational activity.
Prior analyses indicated that Montenegro’s broader ICT landscape comprised 2,646 businesses in 2024, significantly up from 970 in 2020. Employment figures rose from 4,441 to 8,605 during this period, while revenue climbed from €376.1 million to €683.8 million, with profits increasing from €36.1 million to approximately €89.2 million.
Based on recent growth rates applied to these values, projected figures for 2025 suggest revenues could reach around €766 million with employment nearing 9,800 and profits exceeding €170 million. These estimates are not official due to classification revisions but provide insight into the industry’s potential scale within an economy whose annual output remains below €10 billion.
The concentration of revenue within telecommunications means that Montenegro’s ICT performance is closely tied to major operators such as Mtel, Crnogorski Telekom, and One Crna Gora. Collectively, these companies reported over €33 million in profits for 2024 through consistent revenue streams from mobile services, broadband, television, and enterprise solutions.
In terms of capital investment, electronic communications operators allocated €80.87 million in 2024—an increase of nearly 6% from the previous year—with plans for approximately €63 million in investments for 2025 and further allocations planned through 2027. Over the past decade, total investments exceeded €755 million.
These telecom operators possess significant assets including spectrum rights and fiber networks that generate stable cash flows but entail high depreciation costs and financing needs. For instance, Crnogorski Telekom reported a revenue increase of 4.6% along with a net profit of about €1.9 million during the first quarter of 2026.
The strong financial performance of these large operators can skew overall sector statistics; modest margin improvements among them can lead to considerable profit increases compared to rapid growth across numerous smaller firms. This situation underscores the essential role telecom networks play in supporting economic infrastructure required for various digital services.
Computer programming remains a vital source of employment within the sector; however, it faces challenges related to proprietary product development. The overall increase in ICT employment indicates growth was not solely achieved through cost-cutting measures.
Despite employment rising faster than revenue—a trend resulting in a slight decline in revenue per employee—profit per employee increased by approximately 69%. This suggests that factors beyond simple productivity contributed to improved margins within the sector.
Montenegro’s software industry has diversified into areas such as outsourcing and fintech but must focus on developing proprietary products to ensure sustainable growth against competition from regional markets. Companies like Logate and Amplitudo represent local capabilities across various technological domains.
The Smart Specialisation Strategy for 2026–2031 recognizes ICT as a key area for policy focus with nearly 40% of initial funding earmarked for technology initiatives. The effectiveness of this funding will depend on clear action plans and beneficiary criteria tailored to different aspects of ICT development.
While public funding can stimulate domestic ICT turnover through established companies purchasing standard hardware or software products, it must also support research and product development efforts that yield long-term economic benefits.
Montenegro’s ICT landscape remains heavily centered around Podgorica and coastal municipalities while northern regions exhibit limited technological presence. Expanding operations into these areas necessitates more than financial incentives; it requires robust infrastructure and skilled labor availability.
As artificial intelligence begins automating basic coding tasks, junior programmers may face challenges entering the workforce despite an overall need for experienced engineers in specialized fields like cybersecurity and data science.
To address these gaps in workforce readiness, subsidized placements linked with structured mentoring programs could facilitate smoother transitions into employment for IT students while enhancing their competencies.
The anticipated national artificial intelligence strategy aims to explore new commercial opportunities across sectors such as tourism and banking while emphasizing early market design focused on international clientele due to limited domestic demand.
The enhanced methodology for financial reporting within Montenegro’s ICT sector aims to provide clearer insights into its economic contributions while addressing compliance requirements as companies mature amidst evolving market conditions.
