Cost cutting in 2021 put NTT Australia back in the black with AU$1.25 million profit
The Australian arm of Japanese tech giant NTT has published its latest financial results, revealing the company is back in the black with after-tax profit of AU$1.25 million, following the after-tax loss of AU$15.8 million the previous year.
For the period ending 31 March 2021, NTT Australia saved a significant amount as a result of a reduction in major expenses, such as in travel and entertainment, which was down by more than AU$8 million to AU$2.2 million, and a AU$10 million reduction in administration costs to $65 million.
While the company did not disclose its total number of employees, the financial report showed there was a slight decline in expenses related to employee benefits. It decreased from AU$135 million in 2020 to AU$128 million to 2021.
Revenue for the full year remained steady at AU $1.3 billion. Half of it was comprised of sales of goods while the other half was made up from the provision of services, including consulting, technical, managed, and support.
Income tax for the year amounted to AU$574,000, compared to the previous year's tax benefit of AU$2.39 million. Of that total, just over AU$1 million was current year tax expenses, another AU$138,000 was adjustments for the prior year, and deferred tax expenses accounted for AU$596,000.
Receipts from customers was AU$1.46 billion, but payments to suppliers and employees took AU$1.24 billion back out of the kitty.
The immediate parent entity of NTT Australia is Dimension Data Holdings, a company incorporated in England and Wales, and the ultimate parent entity is Japan-based NTT Corporation.
In March, NTT was announced as the latest company to join the technology community at Tech Central, a new Sydney Innovation and Technology precinct in the CBD slated for completion in 2025. NTT signed a memorandum of understanding (MoU) with the New South Wales government to be an anchor tenant at the precinct. It will join the likes of Atlassian and NEC.
Additionally, the NSW government boasted the MoU meant the state government could leverage NTT's technology to "cement Tech Central as a new smart city".