NTT Australia posts AU$12.5m loss
NTT Com ICT Solutions Australia has made its financial results for 2017-18 available to the Australian Securities and Investments Commission (ASIC), reporting a loss of AU$12.5 million.
The 12-month consolidated loss is slightly up from the previous year's AU$14 million loss.
The immediate parent of the company is NTT Communications Corporation, a company incorporated in Japan, and the ultimate parent entity is Nippon Telegraph and Telephone Corporation, also incorporated in Japan.
In Australia, the company is a for-profit entity and primarily is involved in systems integration with datacentre capabilities and solutions.
The principal activities of the group during the financial year were described as systems integration, datacentre solutions, and cloud solutions.
For the 12 months ended March 31, 2018, sales revenue totalled AU$155.7 million, comprised of AU$100.3 million from the sale of goods and AU$55.4 million from the provision of services. Other income was itemised as AU$121,806.
Receipts from customers was AU$164.6 million, but payments to suppliers took AU$152 million back out of the kitty.
The company claimed the cost of sales, staff costs, depreciation expenses, finance costs, commission expenses, losses due to foreign exchange rates, and a handful of other expenses, contributed the loss.
Income tax expense for the year was zero.
The subsidiaries of NTT Com ICT Solutions Australia operating in the country are NTT Com ICT DC Solutions Australia, Steam Engine, Frontline Credit Services, Frontline Systems Australia, and Harbour MSP.
The Australian government legislated a new Diverted Profits Tax (DPT) in March last year, which is intended to prevent the practice of multinational organisations shifting profits made in Australia offshore to avoid paying tax.
The DPT will hit multinationals with global revenue of more than AU$1 billion and Australian revenue of greater than AU$25 million with a 40 percent tax on all profits.
The tax is expected to see AU$100 million in revenue per year from 2018-19 stay on Australian soil.
The new legislation mirrors a law implemented in the United Kingdom, which is nicknamed the Google Tax after the search engine giant was ordered to pay the UK government £130 million in back taxes.
NTT-owned Dimension Data Australia suffered a loss to the tune of AU$16.47 million in FY17. The company received an income tax benefit of AU$5.3 million from the Australian government, however, which brought its loss down from AU$21.7 million.
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