Profits at Oracle's Irish subsidiary fall by 78% to €154m

THE MAIN Irish subsidiary of US software giant, Oracle last year sustained a 78 per cent drop in pre-tax profits to €154 million.

Accounts just filed by Oracle EMEA with the Companies’ Office, show the Dublin-based company increased its turnover by 11 per cent from €3.7 billion to €4.1 billion in the year to the end of May last.

The filings show that the company, which produces and sells computer software for the European market, paid a dividend of €659 million to its US parent. This followed the payment of a dividend of €250 million in 2008.

The accounts also show that the company paid €63.9 million in corporation tax during the period.

According to the directors’ report: “Trading results continued to be strong and the directors are confident that the company will continue to trade successfully in future periods.”

The directors state that the increase in turnover “originated from continued growth in our Software Licence Updates and Product Support Business due to a further increase in our support contract base and high renewal rates”.

The directors state that the drop in pre-tax profits was “due to an increase in the cost of sales”, which increased from €1.64 billion to €2.52 billion.

The directors state that the rise in cost of sales “reflects an increase in the value of the intellectual property which is procured by the company for the conduct of its trade”.

The filings show that the company had accumulated profits of €169 million at the end of May last.

Globally, Oracle – headquartered in Redwood, California – had revenues totalling $23.5 billion (€17.3 billion) in the 2009 fiscal year – an increase of 4 per cent on the 2008 revenues of $22.4 billion.

The accounts show that the company, based in Dublin’s East Point Business Park, employed 918 people at the end of May 2009 – an increase of 75 on 2008.

At the end of May 2009 Oracle had received grants totalling €8.4 million from the IDA principally in relation to the creation of jobs.