Bloomberg reports that Japan’s largest telecoms group, state-backed Nippon Telegraph & Telephone Corp (NTT), is looking to increase operating profits derived from foreign operations to more than USD500 million by fiscal year-end 31 March 2013. The group’s CFO Hiroo Unoura is quoted as saying that the firm is targeting an operating profit margin of more than 5% on USD10 billion in overseas revenues, by that date. He went on to say that the group’s overseas businesses will ‘just about break even’ on an operating basis in the current financial year.
In July this year NTT agreed a deal to acquire London-based solutions provider Dimension Data, in a USD3.3 billion cash deal that will create a significant global IT services and solution provider. Dimension Data, which has extensive business in the US, booked annual revenues of around USD4 billion (year to September 2009) and boasted around 11,500 employees across the globe. The Japanese firm revealed in October it had received acceptance of its plan to buy more than 93% of Dimension Data’s shares, adding that all the regulatory conditions of the deal have been satisfied or waived. NTT is now considering other overseas opportunities to boost its security and cloud businesses and gain access to locally recognised brand names, Unoura said, adding NTT is ‘still weak’ in South America.