NTT has presented new medium-term targets, with a reduction in costs thanks to integrating its fixed and mobile businesses expected to accelerate profit growth. The new EPS target for full-year 2023 is JPY 370, compared to a previous goal of JPY 320 and a reported JPY 302 last year.
The Japanese operator increased its target for cost reductions to JPY 1 trillion by FY2023, from an earlier estimate of JPY 800 billion. The savings are driven by the integration of its mobile business Docomo with the fixed network and the adoption of simplified management structures and more remote working. NTT said the integration of NTT Docomo, NTT Communications and NTT Comware should generate additional profit of JPY 100 billion by FY2023 and over JPY 200 billion by FY2025.
The group's targets are otherwise unchanged, for a ROI of 8 percent by 2023 compared to 7.4 percent last year, and capex at 13.5 percent of sales or less for the domestic network business. A target for overseas revenues to grow to USD 25 billion by FY2023 from USD 19 billion last year was withdrawn, due to uncertainty about the impact of the Covid pandemic and changes in accounting.
