IBM Australia sees $400M revenue slide
- 23 April, 2018 11:00
IBM Australia’s revenue for the year ending December 2017 came in at $2.8 billion, representing a $401.8 million drop from the previous year’s $3.2 billion.
The latest financials for the local arm of the global integrator, which were lodged with Australia’s corporate regulator on 20 April, reveal a continuing downward trend in terms of revenues.
For the year ending 2016, IBM Australia’s revenue fell to $3.2 billion, down from the previous year’s $3.5 billion figure. Revenue from sales of services and goods were both down on the year prior, with services pulling in $2.1 billion for the year, and goods comprising $634.4 million.
While the results for the year ending 2017 show continuing revenue woes, however, they also highlight a surge in profits for the company’s local operations.
Indeed, after-tax profit for the year came in at $40.1 million, a substantial increase from the prior year’s $16.8 million. The company’s total comprehensive income for the year came to $41 million. Last year, the company reported $18.6 million total comprehensive income.
It should be noted that IBM Australia’s results for the year ending 2016 topped off a tough 12 months for the global integrator, with the company coming under fire in 2016 over its role in the bungled 2016 eCensus portal project with the Australian Bureau of Statistics (ABS).
Now, things appear to be looking up – at least in terms of post-tax profit and cost reduction.
For example, operating costs in 2017 came to $501.8 million, down from the previous year’s $626.5 million.
Wages and salaries were down by $152.8 million from the year prior, to $756.6 million, suggesting some further reduction head count during the year. Overall employee benefit expenses, meanwhile, were down by $186.2 million, to $915.8 million for the year.
Termination benefits alone came in at $16.9 million, but this was well below the previous year’s $43.1 million.
At the same time, IBM Australia’s income tax expense dropped by nearly $5.5 million, to $8.4 million for the year, with the company’s current tax expense for 2017 standing at around $55.4 million, $46.6 million of which was counted as deferred tax for the year.
Despite the fallout of the eCensus debacle in 2016, IBM Australia continued to win meaty contracts in the Federal Government space during 2017, with the company picking up a $164.7 million, three-year software licensing contract with the Department of Defence in July last year and a $39.5 million personnel outsourcing deal with the Australian Taxation Office (ATO) in October.