No dot.bomb this time

CEOs and board representatives in the technology, media and telecoms (TMT) sectors believe the current recession will not be as bad as 2000/2001, according to the latest findings from the 2008 Winter Survey conducted by corporate finance TMT specialist, Cobalt Corporate Finance.

Over 100 TMT sector CEOs and board representatives were surveyed revealing that the majority (64%) believes the impact of this recession on the sector will not be worse than the 2000/2001, when the technology sector experienced its own ‘recession’.

Ninety one percent of those surveyed said that their sales figures for 2009 will be static or better than 2008 figures, and half of them claim no material impact from the credit crunch to date.

Although there is a hint of optimism, overall findings reveal that expectations regarding the economy and potential depth of the recession have worsened, but the impact of the recession on the sector is expected to be largely neutral with as many winners as losers. A prolonged recession is seen by 65% of those surveyed as the principle threat to their sector.

Commenting on the latest findings, partner at Cobalt Corporate Finance, Chris Williams, said: “It is encouraging to see this resilient view coming from the technology, media and telecoms industries. The younger businesses in these vibrant sectors might be expected to be perennially positive for their own prospects but the overall response reflects significant maturing of the sectors since the 90s, with improved cash-flow and stronger balance sheets.”