IBM reported a 26 per cent jump in first-quarter net profit, driven by its software and consulting divisions.
The company's net profit rose to $927 million in the three-months to the end of March, from the same period a year earlier, the company said in a regulatory filing on Wednesday.
Revenue increased about 0.4 per cent in the quarter to $14.3 billion from a year earlier, which was in line with analysts' estimates.
The company's shares closed down more than 1 per cent to $126.32 at the end of trading on Wednesday, but gained nearly 2 per cent in after hours trading.
“Our first-quarter results demonstrate that clients continue turning to IBM for our unique combination of an open hybrid cloud platform, enterprise-focused AI [artificial intelligence], and business expertise to unlock productivity and drive efficiency in their operations,” said Arvind Krishna, IBM’s chairman and chief executive.
“This gives us confidence in our current growth expectations for revenue and free cash flow for the year.”
IBM earned nearly half of its revenue, or $7.1 billion from the Americas region, while it earned $2.8 billion from Asia Pacific and $4.3 billion from Europe, and the Middle East and Africa region.
The New York-based company expects revenue growth of 3 per cent to 5 per cent in the 2023 full financial year. It predicts about $10.5 billion in free cash flow, up more than $1 billion yearly, during the period.
IBM’s consulting arm, which included business transformation, technology consulting and application operations, contributed $5 billion in the first quarter, almost 2.8 per cent more than the prior year period.
Its software business added about $5.9 billion in the first quarter, up by about 2.6 per cent year on year.
The infrastructure division earned $3.1 billion in sales, nearly 3.7 per cent down on a yearly basis.
Financing, which includes clients and commercial financing, generated $200 million, up 27.3 per cent annually.
In the first quarter, the company generated net cash from operating activities of $3.8 billion, up $500 million on an annual basis. IBM’s free cash flow stood at $1.3 billion as of March 31.
IBM said it ended the first quarter with $17.6 billion of cash and marketable securities, up $8.8 billion from December last year.
We remained focused on the fundamentals of our business, increasing productivity and generating operating leverage
James Kavanaugh,
IBM's senior vice president and chief financial officer
Debt, including IBM financing debt of $10.5 billion, totalled $58.7 billion. It was up by nearly $7.8 billion since the end of 2022.
The company also returned $1.5 billion to shareholders in dividends in the first quarter.
IBM is “well positioned to continue investing for growth and returning value to shareholders through dividends”, said James Kavanaugh, the company’s senior vice president and chief financial officer.
“We remained focused on the fundamentals of our business, increasing productivity and generating operating leverage … as a result, we again expanded our gross profit margin, improved our underlying profit performance and increased our cash generation.”
More from Neighbourhood Watch:
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
SCORES IN BRIEF
New Zealand 153 and 56 for 1 in 22.4 overs at close
Pakistan 227
(Babar 62, Asad 43, Boult 4-54, De Grandhomme 2-30, Patel 2-64)
The Bloomberg Billionaire Index in full
1 Jeff Bezos $140 billion
2 Bill Gates $98.3 billion
3 Bernard Arnault $83.1 billion
4 Warren Buffett $83 billion
5 Amancio Ortega $67.9 billion
6 Mark Zuckerberg $67.3 billion
7 Larry Page $56.8 billion
8 Larry Ellison $56.1 billion
9 Sergey Brin $55.2 billion
10 Carlos Slim $55.2 billion
MATCH INFO
CAF Champions League semi-finals first-leg fixtures
Tuesday:
Primeiro Agosto (ANG) v Esperance (TUN) (8pm UAE)
Al Ahly (EGY) v Entente Setif (ALG) (11PM)
Second legs:
October 23
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Find the right policy for you
Don’t wait until the week you fly to sign up for insurance – get it when you book your trip. Insurance covers you for cancellation and anything else that can go wrong before you leave.
Some insurers, such as World Nomads, allow you to book once you are travelling – but, as Mr Mohammed found out, pre-existing medical conditions are not covered.
Check your credit card before booking insurance to see if you have any travel insurance as a benefit – most UAE banks, such as Emirates NBD, First Abu Dhabi Bank and Abu Dhabi Islamic Bank, have cards that throw in insurance as part of their package. But read the fine print – they may only cover emergencies while you’re travelling, not cancellation before a trip.
Pre-existing medical conditions such as a heart condition, diabetes, epilepsy and even asthma may not be included as standard. Again, check the terms, exclusions and limitations of any insurance carefully.
If you want trip cancellation or curtailment, baggage loss or delay covered, you may need a higher-grade plan, says Ambareen Musa of Souqalmal.com. Decide how much coverage you need for emergency medical expenses or personal liability. Premium insurance packages give up to $1 million (Dh3.7m) in each category, Ms Musa adds.
Don’t wait for days to call your insurer if you need to make a claim. You may be required to notify them within 72 hours. Gather together all receipts, emails and reports to prove that you paid for something, that you didn’t use it and that you did not get reimbursed.
Finally, consider optional extras you may need, says Sarah Pickford of Travel Counsellors, such as a winter sports holiday. Also ensure all individuals can travel independently on that cover, she adds. And remember: “Cheap isn’t necessarily best.”
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How the UAE gratuity payment is calculated now
Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.
The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.
1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):
a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33
b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.
2. For those who have worked more than five years
c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.
Note: The maximum figure cannot exceed two years total salary figure.
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Mountain Classification Tour de France after Stage 8 on Saturday:
- 1. Lilian Calmejane (France / Direct Energie) 11
- 2. Fabio Aru (Italy / Astana) 10
- 3. Daniel Martin (Ireland / Quick-Step) 8
- 4. Robert Gesink (Netherlands / LottoNL) 8
- 5. Warren Barguil (France / Sunweb) 7
- 6. Chris Froome (Britain / Team Sky) 6
- 7. Guillaume Martin (France / Wanty) 6
- 8. Jan Bakelants (Belgium / AG2R) 5
- 9. Serge Pauwels (Belgium / Dimension Data) 5
- 10. Richie Porte (Australia / BMC Racing) 4
Brief scores:
Manchester City 3
Aguero 1', 44', 61'
Arsenal 1
Koscielny 11'
Man of the match: Sergio Aguero (Manchester City)
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
GIANT REVIEW
Starring: Amir El-Masry, Pierce Brosnan
Director: Athale
Rating: 4/5
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
MATCH INFO
Uefa Champions League, semi-final result:
Liverpool 4-0 Barcelona
Liverpool win 4-3 on aggregate
Champions Legaue final: June 1, Madrid
