Menu
IBM NZ's sales and profits fall in 2018

IBM NZ's sales and profits fall in 2018

IBM says the results reflect the cyclical nature of its business

IBM's NZ revenue and profits have fallen year on year.

IBM's NZ revenue and profits have fallen year on year.

Credit: Dreamstime

IBM's New Zealand sales fell nearly eight per cent for the year ended 31 December 2018 while profit plummeted by 55 per cent.

The company's annual financial statements show sales declined from $297.4 million in 2017 to $276 million while net profit before tax fell from $37.1 million to $16.6 million.

The result comes after IBM's NZ business appeared to stabilise last year after a long sequence of declines. IBM's local business, for instance, boasted total sales of $429.7 million in 2012 and a pre-tax profit of $54.5 million.

Selling and administration costs in 2018 were up over $4 million to $32.8 million despite wages and salaries more than $8 million off year-on-year, down to $55.8 million.

By source, technology services and cloud platforms delivered $139.5 million in sales while cognitive solutions contributed $69.1 million, followed by global business services with $33.9 million (see chart below).

IBM NZ's revenue sources in 2018.
IBM NZ's revenue sources in 2018.

IBM said the 2018 results in New Zealand reflect the cyclical nature of software, hardware and services sales. 

"New Zealand is an important market for IBM," a spokesperson said. "Our client relationships are one of our key strengths, and we continue to invest in key infrastructure and skills locally. 

"IBM recently launched P-TECH, an education and workforce development initiative that will help address New Zealand’s skills shortages, particularly in digital technology."

IBM stumbled locally in recent years in a series of high profile projects such as Customs Joint Border Management System, a national cloud system for DHBs and cloud services for the All of Government IaaS panel.

Globally, IBM reported revenues of $79.6 billion for 2018, marginally up from $79.1 billion in 2017.




Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags IBMNew Zealandannual resultsmachine learningCognitive

Featured

Slideshows

Reseller News Platinum Club celebrates leading partners in 2019

Reseller News Platinum Club celebrates leading partners in 2019

The leading players of the New Zealand channel came together to celebrate a year of achievement at the annual Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months.

Reseller News Platinum Club celebrates leading partners in 2019
Reseller News hosts alumnae breakfast for Women in ICT Awards

Reseller News hosts alumnae breakfast for Women in ICT Awards

Reseller News hosted its second annual alumnae breakfast for the Women in ICT Awards in New Zealand, designed to showcase the leading female leaders in the industry. Held at The Cordis in Auckland, attendees came together to hear inspiring keynotes and panel discussions, alongside high-level networking among peers. Photos by Gino Demeer.

Reseller News hosts alumnae breakfast for Women in ICT Awards
Reseller News Innovation Awards 2019: meet the winners

Reseller News Innovation Awards 2019: meet the winners

Reseller News honoured the standout players of the New Zealand channel in front of more than 480 technology leaders in Auckland on 23 October, recognising the achievements of top partners, emerging entrants and innovative start-ups.

Reseller News Innovation Awards 2019: meet the winners
Show Comments