Microsoft profits soar to €800m

MICROSOFT Ireland Operations Ltd made pre-tax profits of€809.4 million last year and paid €88.99m in corporation tax to the Exchequer.

The profits for the year to the end of June 2009 show a dramatic 70% increase from the €477m which the company made in 2008.

Microsoft Ireland Operations Ltd paid a dividend of €5,551.4m to its parent the Microsoft Corporation, according to accounts just filed with the Companies Registration Office. The company did not make a dividend payment in 2008 when it made profits of €477m.

The company concedes in its accounts that the amount of corporation tax paid for the year is at a lower rate than the standard rate of corporation tax – €101.2m. Its tax burden was reduced because of various reliefs the company availed of.

However, the company which describes its principal activity to be marketing and selling and distribution of software, saw turnover fall from €11.36 billion to €10.82bn for the 12 months to the end of June 2009. Under the heading “fundamental risks and uncertainties facing the company” the directors state:

“The global recession had a major impact on the financial performance of companies in virtually every industry in 2009, and Microsoft Ireland Operations Ltd was no exception.

“The global recession created challenges for Microsoft Corporation, and for the industry as a whole. In response to this, during the fiscal year 2009, the company made important adjustments to cost structure through strategic job reductions and other cost-saving initiatives..”

The company lists its debtors in current assets at €7.35bn (2008: €7.44bn) and the company has fixed assets of €235.65m (€78.9m). €5.08bn of debtors is ascribed to “amounts owed by group undertakings”. The company also made net interest income of €63.36m (2008: €104.5m).

Microsoft Ireland Operations Ltd had an average staff of 717 in 2009, down from 818 in 2008. In 2008 the company had 144 workers engaged in “localisation and product development” and had none engaged in this activity in 2009.

The aggregate and payroll costs of all employees were €79m in 2009, down from €82.7m in 2008.