IBM New Zealand’s profit took a mauling in FY2022 – Reseller News

IBM New Zealand has reported its financial statements for the year to the end of December 2022 and, while still in profit, it was a rough year.

Revenue fell from $172.4 million to $154.9 million while cost of sales, services and financing increased from $107.2 million to $119.8 million. Other expenses also increased, from $25.2 million to $28.8 million.

That combination saw operating profit plunge from $40.1 million to $6.3 million while after tax profit from continuing operations fell from $27.2 million to $4.6 million.

As the business now known as Kyndryl had been fully separated from IBMfor reporting purposes during both financial years, the two periods are now more easily comparable.

IBM-owned software company Red Hat NZ also posted its financial results. Revenue increased from $23.2 million to $26.6 million while pre-tax profit was relatively flat at $1.1 million.

Another local entity, IBM Global Financing NZ, reported revenue of $3.5 million, up from $3.2 million for the same period last year. After tax profit dipped slightly from $1.5 million to $1.4 million.

IBM NZ declined a request for comment, however, the company has been vocal over the last couple of years about its commitment to partnership strategies.

In November last year, IBM's local unit was hailed as a channel star with over 90 per cent of its revenue coming through the channel compared with around two-thirds in the broader APAC region.

That made the NZ business one of the most channel-led in the world.

IBM had over 100 partners in New Zealand and was keen to build that ecosystem further, Paul Burton, general manager for IBM Asia Pacific, toldReseller News.

"We want to work with them to develop skills that can help them be successful," he said. "We are very interested in marketing with them and driving them more leads and working collaboratively with them in front of clients."

Locally, IBM worked with all the major players and a host of specialists.

"We are very happy with the ecosystem in New Zealand but think we can do better in terms of enabling them and training them up in our technology," Burton said. "I think we can be better partners to them to be honest."

There had to be a level of co-dependency in partnerships, Burton added.

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IBM New Zealand's profit took a mauling in FY2022 - Reseller News