The growing exodus of multinational companies from Russia includes many in the technology, media and telecommunications sectors.
Speaking in during recent industry conferences, TMT executives detailed their companies' levels of exposure to the regions impacted by Russia's invasion of Ukraine. While most expected little financial impact from the crisis, many spoke of efforts to assist with cybersecurity and humanitarian initiatives.
The direct financial impact to International Business Machines Corp. is insignificant, while indirect impacts to the company's supply chain and European demand are still to be determined, said Thomas Rosamilia, chairman of the company's North America operations and senior vice president of IBM Software, at a March 9 investor conference. IBM is focused on rolling out cybersecurity solutions to its customers across its hardware and software as the conflict raises the threat of cyberattacks, the executive said.
Similarly, Microsoft CFO Amy Hood anticipated an impact of less than 1% on the company's finances due to winding down some of its operations in Russia in the wake of the conflict. Microsoft is instead focused on humanitarian and cybersecurity initiatives to support the people most impacted by the crisis, Hood said at a March 8 investor conference.
Other companies reporting a small financial impact to finances included Netflix Inc., which said Russia accounted for less than 1% of its revenue, and Walt Disney Co., which said about 2% of its total operating revenue came from Russia or Ukraine.
Netflix CFO Spencer Neumann said March 8 that the key factors in the company's decision to shut down its service there were a "complex regulatory market" and the small size of the company's business.
Fortinet Inc. CFO Keith Jensen said March 9 that about 3% of the company's revenue came from countries in Eastern Europe associated with the former Soviet Union, including about 1% from Russia. The company's bigger concern amid the conflict is helping its customers prepare for the possibility of increased cyberattacks, particular those involved in government and infrastructure, the CFO said.
Facebook parent Meta Platforms Inc. said Russia accounted for about 1.5% of its advertising revenue in 2021. The company is no longer accepting ad buys in the country. Facebook's service is largely blocked in Russia amid the conflict. Meta is seeing some softness in advertising demand elsewhere in Europe and expects that to continue while the conflict persists, CFO David Wehner said March 10.
Twitter Inc. CEO and Chief Technology Officer Parag Agrawal said March 10 that it was too early to predict the conflict's business impact on the company, but said executives are mindful of Twitter's role in facilitating public conversation about the crisis. The company has banned ads from Russian state-affiliated media groups while also labeling, de-amplifying and off-boarding entities that are spreading propaganda.
U.S. government sanctions prompted Lumen Technologies Inc. to disconnect its internet network in Russia. The country accounted for "a very small" portion of its business, mostly serving foreign multinational entities that operated within Russia, said Laurinda Pang, president of global customer success, wholesale and international, during a March 9 presentation.
Spotify Technology SA stopped monetizing its music-streaming platform in the country and is expects to drop about 1.5 million users within the first and second quarters following its decision to stop offering its premium tier in Russia, CFO Paul Aaron Vogel said March 9. The company still expects to perform above its previously shared financial targets.