Innovation and the Pandemic Propelled Performance G.R. Jenkin & Associ

Innovation and the Pandemic Propelled Performance The 2022 TMT Value Creators Report February 28, 2022 By Simon Bamberger, Hady Farag, Derek Kennedy, Franck Luisada, Michaela Novakov, Vaishali Rastogi, and Neal Zuckerman The outsized role that technology, media, and telecommunications (TMT) companies play in modern life has made the sector a leader in creating shareholder value. From 2016 to 2021, TMT companies collectively outperformed those in many other industries in total shareholder return (TSR), according to BCG's 2022 Value Creators Report. Among our findings: The lion's share of TMT value creation came from tech players, which from 2016 to 2021 had a median annual TSR performance of 30%, more than double the median overall return of 13% for the 33 industries we studied. Of the 232 TMT companies in our sample, 70% posted a higher TSR during the period that included the peak of the pandemic, the 21 months from March 2020 to November 2021, than during the prior 21 months. Continuing on the same growth trajectory may be a challenge given recent investor anxieties about inflation, monetary policy, and moderating earnings growth.