Tuesday, May 28, 2024

Profits at main Irish Microsoft unit rose 11% to $3.95bn

Must read

Profit before tax at Microsoft’s main Irish subsidiary rose 11% last year to $3.95bn.

The performance by Microsoft Ireland Operations Ltd was off the back of revenues of $69bn, up from $65bn a year earlier.

The firm said this was due to increases across all lines of business, intelligent cloud, more personal computing and productivity and business processes.

The company is resposible for the marketing, sales and distribution of Microsoft hardware and software throughout the Europe, Middle East and Africa and Asia Pacific regions.

$19bn of its turnover came from products, with the balance of $59bn arising from services.

The business paid tax of $652m.

A dividend of $9bn was paid out by the firm to its parent.

The company employed 2,779 people during the period, up by around 400 on 2022, with 1,276 of those in operations and administration, and 1,503 in sales.

The firm’s payroll bill came to $447.25m, meaning that on average staff were paid $160,000 in wages, pension contributions and shares.

Microsoft Ireland Operations Ltd’s immediate parent is another Irish registered business, Microsoft Ireland Research UC.

It reported a profit before tax of $33.8bn, down $4.78bn on 2022, which includes distributions received from its subsidiaries of $10.5bn.

Turnover was up $3.9bn though at just under $52bn, as a result of increased royalty income from group companies.

Tax paid amounted to $2.8bn, while the company paid a dividend of $38bn to its parent.

This firm licenses the rights of assets owned and developed by the company to other group companies, to enable them to sell and distribute Microsoft products, with other group companies paying a royalty to the company under these agreements.

Microsoft Ireland Research UC’s immediate parent is another Irish registered company, Microsoft Round Island One UC.

A holding company for the Microsoft investments, it recorded a profit before tax of $37.8bn, down from $77.9bn on 2022, caused by reduced income from investments in other group companies.

Turnover in that business was $38bn, compared to $78bn a year earlier, due to lower income from investment in other group companies.

It paid a dividend of $38bn to its parent during the period and following the end of the financial year it paid a further $17.5bn in an additional dividend.

Corporation tax paid by the company came to $414m.

Latest article