NTT Com FY profit grows 12%

Dylan Bushell-Embling
13 May 2013
00:00

Japan's NTT Communications posted a 12% jump in profit for the year ending in March, as subsidiary NTT DoCoMo announced a management shake-up.

NTT Com recorded a full-year net profit of 65.3 billion yen ($643.1 million). But group operating revenues fell 1.5% to 1.19 trillion yen.

Total data networks revenue fell 0.7% to 427 billion yen, and group voice revenues slumped 9.1% to 320 billion yen.

By contrast, NTT Com posted strong gains in cloud platform revenue (up 17.9% to 99 billion yen), as well as applications and content revenue (up 4.9% to 108 billion yen.)

The company made progress with its plan of leveraging its expertise as a telecom operator to become a one-stop ICT outsourcing shop. As of the end of the year, NTT Com had global data centers in 144 locations, and was offering its Enterprise Cloud services in nine countries.

Looking ahead to the current financial year, NTT Com warned that with Japan's economy still struggling and the global economic slowdown continuing, “the future direction of the domestic economy remains uncertain.”

But the company is still predicting a 2.5% increase in group operating revenues for the year to 1.225 trillion yen.

Separately, domestic subsidiary NTT DoCoMo has announced some significant proposed changes to its management team.

Shareholders will next month vote on a proposal to appoint up to three new board members, three new senior vice presidents and two new members to its audit and supervisory board.

At the same time, four current senior vice presidents, two board members and two audit board members will be resigning.

The new board member candidates are EVP Kiyoshi Tokuhiro, NTT Com general manager of finance Takashi Nakamura and prospective non-executive director Teruyasu Murakami. The SVP candidates are current executives Ichiro Nishino, Kouji Furukawa and Kyoji Murakami.

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