Business
Cost cuts rescue Digital Q3 results
Digital has reported better than expected third quarter profits despite an 8.6 per cent drop in sales.
A $51 million profit for the quarter, compared with $124.1 million for the same period last year, was rescued by lower operating costs, according to the company, which fell 6.2 per cent to $1.06 billion.
Total operating revenue was $3.31 billion compared with $3.62 billion a year ago. The reduction in revenue was expected to lead to a drastic cut in earnings, but the company has managed to show encouraging signs for investors that it can avoid red ink despite a downturn in business.
Digital chairman Robert Palmer said that growth in NT and Internet solution sales was "encouraging" for the company and should help Digital return to a "year-on-year revenue growth."