The latest financial news for Microsoft does not end up being rosy, and it is that the American multinational is going through a difficult moment in which, although its income increases considerably, its benefits do not do the same. This economic situation is expansive for the company’s subsidiary in Spain and Portugal, Microsoft Ibérica.
As extracted from the analysis of the last fiscal year in the Mercantile Registry for the periods between July 1, 2021 and June 30, 2022, Microsoft’s subsidiary in the Iberian Peninsula seems to be experiencing difficult economic timesAlthough it is not all bad news.
Microsoft accounts to shine
After the publication of the accounts of the last fiscal year of the company, the conclusions do not seem to open a hopeful path, and it is that the technology company seems to be living through difficult times in economic matters. It should be remembered that the multinational Microsoft announced at the beginning of this year the mass dismissal of more than 10,000 people that made up his squad until then, and now the numbers seem to speak for themselves.
The situation the multinational is going through seems to have also extended to its branch in Spain and Portugal, Microsoft Ibérica, whose accounts have shown the difficult situation they seem to be going through.
The subsidiary that Alberto Granados has directed since July 2021 has recently stated that the growth of the company is a reality as reflected in its income, figures that improve the 690 million euros registered in the last fiscal year and that have now grown by 43%standing at 990 million euros.
However, we cannot be left alone with this data and it is what really worries the company, although its income has improved considerably, expenses derived from business activity have also risen. Microsoft Ibérica has experienced an increase in its expenses, so this has been noted in its benefits, which have been 23% less compared to the last fiscal year. In this way, the profits have gone from 22 million euros to 17 million euros.
Increased expenses reduce profits
This decline in profits by the Spanish and Portuguese subsidiary of Microsoft, are determined by a combination of factors. One of these expenses is payment for services to the company’s headquarters in Ireland, which has gone from 481 million euros to 747 million euros. Microsoft Ireland deals with merchandise consumption, general services and also administrative services such as customer recruitment and distribution support.
Another of the disbursements that the Iberian subsidiary has had to face is the increase in personnel costs, and it is that the Spanish delegation has grown in recruitment, from 810 permanent employees to 935 today. Of this number, at least 709 were men and only 330 have been women.
Of all these positions, the most renewed have been those of software technician and sales and marketing, which went from having 238 workers to 324 today. However, all that glitters is not gold and the downside of offering more employability is the increase in personnel costs, which have gone from 126 million euros to 151 million.
In addition to these fronts, Microsoft Ibérica has had to face a new problem, payments to the Treasury for an inspection that took place at the end of 2020. The Tax Agency has claimed three additional contracts that with late-payment interest already amount to 19 million euros, after payment was claimed for certain contracts invoiced through the headquarters in Ireland.
