Montenegro’s information and communications technology (ICT) sector recorded significant financial growth during 2025, with aggregate profit increasing 93 per cent, revenue rising 12 per cent and employment expanding 14 per cent, despite a 19 per cent decline in the number of companies operating in the sector.
The results were presented on 24 July 2026 by the Chamber of Economy of Montenegro and industry association ICT Cortex. The analysis, based on company financial statements, applies an updated methodology aligned with the revised classification of economic activities and OECD standards, improving international comparability while limiting direct comparisons with earlier studies.
Computer programming remained the largest ICT activity by company numbers and employment, while telecommunications continued to account for the majority of sector revenue. Telecom operators represented only 4 per cent of ICT companies but generated more than half of total sector revenue. The figures indicate a sector with fewer companies but higher overall revenue, profitability and employment.
Fewer companies generate higher financial results
The simultaneous increase in revenue and reduction in the number of companies resulted in a substantial rise in average business size. With sector revenue increasing 12 per cent and the number of companies falling 19 per cent, average revenue per company increased by approximately 38 per cent. Employment per company rose by around 41 per cent, while average profit per company more than doubled, increasing by approximately 138 per cent.
Aggregate profit expanded considerably faster than revenue. While revenue rose by 12 per cent, profit increased 93 per cent, indicating a significant improvement in sector profitability relative to 2024. The published figures do not distinguish between operating profit, EBITDA, net profit or one-off gains.
The reduction in company numbers may reflect business closures, market consolidation or changes introduced through the revised statistical classification. Following rapid growth in technology-related company registrations after 2020, supported by foreign professionals, remote workers and companies relocating from Russia, Ukraine and other markets, some registered entities had limited commercial activity or primarily served as legal vehicles for individual contractors. The published data do not separate the effects of reclassification, liquidation, mergers or company relocations.
Previous sector analysis identified 2,646 ICT companies in 2024, compared with 970 in 2020. During the same period, employment increased from 4,441 to 8,605, revenue rose from €376.1 million to €683.8 million, and reported profit increased from €36.1 million to approximately €89.2 million.
Telecommunications continue to generate most ICT revenue
The financial performance of Montenegro’s ICT sector remains heavily influenced by the country’s telecommunications operators. Mtel, Crnogorski Telekom and One Crna Gora together generated more than €33 million in profit during 2024, supported by recurring revenue from mobile, broadband, television and enterprise services.
Electronic communications operators invested €80.87 million during 2024, representing an increase of 5.99 per cent from the previous year. Planned sector investment amounts to approximately €63 million in 2025, followed by more than €53 million in 2026 and around €49 million in 2027. Total investment during the previous decade exceeded €755 million.
The telecom sector’s ownership of spectrum licences, fibre infrastructure, base stations, data facilities and customer contracts gives operators a different financial profile from software companies, including higher capital requirements and recurring cash flow. Crnogorski Telekom, majority owned by Hrvatski Telekom and ultimately linked to Deutsche Telekom, reported continued growth during the first quarter of 2026. Revenue increased 4.6 per cent, EBITDA rose 3.5 per cent, and net profit reached approximately €1.9 million. The operator also reported fibre coverage exceeding 155,000 households while continuing investment in 5G and fixed-network infrastructure.
Software companies remain largest employers
Computer programming continued to represent the largest source of ICT companies and skilled employment. The sector’s 14 per cent employment growth indicates expansion alongside higher profitability rather than workforce reductions. Employment increased slightly faster than revenue, resulting in an estimated decline of approximately 1.8 per cent in revenue per employee, while profit per employee increased by approximately 69 per cent.
Montenegro’s software industry includes activities such as outsourcing, custom software development, digital marketing, fintech, gaming and export-oriented digital services.
Companies operating in these areas include Logate, Amplitudo, Čikom, Coinis, Uhura Solutions and Five Group, covering enterprise software, telecommunications solutions, artificial intelligence and digital services.
Smart Specialisation Strategy expands ICT support
Montenegro’s Smart Specialisation Strategy 2026–2031 places ICT among the country’s priority development sectors. Almost 40 per cent of the funding planned during the strategy’s first two years is allocated to ICT and horizontal digital-transformation measures. Future public support is expected to cover infrastructure, business digitalisation, research, export development, workforce training and software product development.
Montenegrin companies also have access to regional and European financing instruments through the Western Balkans Investment Framework, including the Enterprise Expansion Fund, Innovation and Green Transformation Facility, Single Market Ready Programme and EFSD+ guarantees.
The Go Digital in the Western Balkans programme, supported by the European Bank for Reconstruction and Development (EBRD) and the European Union, provides a regional financing envelope of approximately €377 million through loans, grants and technical assistance supporting automation, digitalisation and green technologies.
ICT activity remains concentrated in Podgorica and the coast
Most ICT companies and employees remain concentrated in Podgorica and Montenegro’s coastal municipalities, while the northern part of the country continues to have a comparatively limited technology sector. Expansion into Nikšić, Bijelo Polje, Berane and other northern municipalities depends on broadband infrastructure, office capacity, technical education, mentoring, English-language skills and customer access. Institutional support is provided through the University of Montenegro, Science and Technology Park, Innovation Fund, Tehnopolis and ICT Cortex.
Artificial intelligence reshapes workforce requirements
The sector continued to add employees during 2025, although companies reported increasing challenges for junior software developers as artificial intelligence automates basic coding, testing and documentation. Demand continues to grow for experienced software engineers, data specialists and cybersecurity professionals.
Proposed measures include subsidised placements for IT students linked to structured mentoring, technical skills development and minimum employment periods. Universities are also expected to expand education beyond programming languages to include system architecture, data engineering, cloud technologies, cybersecurity and the integration of AI tools into business processes. Montenegro is preparing a national artificial intelligence strategy, with potential commercial applications expected in tourism, banking, telecommunications, energy, public administration and property management.
Improved reporting methodology strengthens sector analysis
The updated ICT methodology introduces clearer separation between telecommunications infrastructure, software exports, equipment sales, marketing services and newly established microbusinesses. Future reporting is expected to provide additional detail on revenue, EBITDA, net profit, exports, wages, investment and employment by activity, together with information on sector concentration and the contribution of foreign-owned companies. Technology companies are also facing more demanding accounting and tax requirements as their business models increasingly combine software development, intellectual-property licensing, consulting services, related-party transactions and international customer contracts.
