NTT New Zealand revenue rises as annual loss narrows

NTT New Zealand increased revenue in the year ended 31 March 2026, although the company remained in loss for a second consecutive year.

Revenue rose to NZD $126.027 million, up from NZD $106.744 million a year earlier. The increase was driven primarily by product sales, platforms, and managed services.

Revenue from product sales increased to NZD $34.459 million from NZD $21.259 million. Revenue from platforms and managed services rose to NZD $72.460 million from NZD $66.228 million.

Consulting and technical services revenue was broadly stable at NZD $19.108 million, compared with NZD $19.257 million in 2025.

Interest income also increased slightly to NZD $165,000 from NZD $98,000. Total operating revenue reached NZD $126.192 million, up from NZD $106.842 million.

Loss narrows

Despite the revenue increase, NTT New Zealand reported a loss before income tax of NZD $8.631 million. That compares with a loss of NZD $10.884 million in 2025.

The after-tax loss narrowed to NZD $8.638 million from NZD $10.894 million. The company recorded no other comprehensive income or loss, leaving total comprehensive loss unchanged.

Cost of sales increased to NZD $71.721 million from NZD $56.010 million. Employee benefits expense also rose to NZD $39.230 million from NZD $35.381 million.

Other expenses declined to NZD $13.949 million from NZD $14.566 million. Depreciation and amortisation fell slightly to NZD $247,000, while depreciation on right-of-use assets decreased to NZD $4.294 million.

Interest expense remained a significant cost at NZD $5.382 million, although this was down from NZD $6.820 million in the previous year. Total operating expenses increased to NZD $134.823 million from NZD $117.726 million.

Cash pressure

The company's cash position remained under pressure during the year.

NTT New Zealand recorded a net cash outflow from operating activities of NZD $2.338 million, compared with a NZD $6.681 million inflow in 2025.

Cash receipts from customers were NZD $158.778 million, down slightly from NZD $160.163 million. Payments to suppliers and employees increased to NZD $155.892 million from NZD $146.750 million.

The company also paid NZD $5.382 million in interest during the year.

Investing activities resulted in a net cash outflow of NZD $769,000. This included NZD $407,000 spent on property, plant and equipment and NZD $543,000 of acquisition-related cash outflows. Proceeds from the sale of property, plant and equipment were NZD $181,000.

Financing activities produced a net outflow of NZD $5.510 million. This included NZD $4.814 million in principal lease payments and NZD $696,000 in related-party loan movements.

The combined movements reduced cash and cash equivalents by NZD $8.617 million. The company's cash balance, including its overdraft position, moved from negative NZD $73.756 million to negative NZD $82.373 million.

Balance sheet

NTT New Zealand's balance sheet showed total assets of NZD $54.073 million at 31 March 2026, up from NZD $50.444 million on a restated basis.

Current assets increased to NZD $32.540 million from NZD $30.423 million. Trade and other receivables rose to NZD $25.159 million from NZD $21.340 million.

Non-current assets increased to NZD $21.533 million from NZD $20.021 million. Finance lease receivables increased to NZD $6.435 million from NZD $30,000, while right-of-use assets declined to NZD $9.951 million from NZD $14.165 million.

Total liabilities increased to NZD $137.754 million from NZD $124.944 million. This left the company with net liabilities of NZD $83.681 million, compared with NZD $74.500 million a year earlier.

Accumulated losses increased to NZD $203.138 million from NZD $194.500 million. Contributed equity remained unchanged at NZD $120 million.

Parent support

The financial statements highlight the company's reliance on support from its wider group.

At the reporting date, current liabilities exceeded current assets by NZD $90.2 million, compared with NZD $79.6 million in 2025. The company had accumulated losses of NZD $203.1 million.

The directors said the financial statements had been prepared on a going concern basis because NTT Asia Pacific would continue to support the New Zealand business through an overdraft facility for at least 12 months from the date the financial statements were signed. The statements also note that sufficient unused capacity was available under the facility at year-end.

Group transaction

During the year, NTT New Zealand acquired NTT New Zealand Database Solutions from a related party within the NTT Group for NZD $2.279 million.

The transaction was treated as a common control transaction. The acquired assets and liabilities were recognised at book value, with the difference between the consideration and net book value recorded directly in equity as a common control reserve.

NTT New Zealand's principal activities include integrating online business solutions, value-added networking services, and security consulting. The company is wholly owned by NTT Asia Pacific Holdings, while its ultimate parent is Nippon Telegraph and Telephone Corporation.