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NTT DATA benefits from strong SAP channel position

Firm shares full year numbers, breaking records and talking of the trust its SME customer base has in the business

NTT DATA Business Solutions is patting itself on the back after breaking through the €100m mark for earnings before interest, taxes and amortisation (EBITA).

The SAP consultancy shared results for its fiscal year, with revenues increasing by 13.3% to a record high of €1.61bn, cloud subscriptions improving by 42.7% and adjusted EBITA moving up by 19.7% from €99.2m to €118.8m.

NTT DATA has been working on changing the balance of its business, with international business increasing as it gets closer to 60% of total sales coming from foreign business.

The firm highlighted the trust its 6,000-strong small and medium-sized enterprise (SME) customer base had in the firm to deliver digital transformation.

Norbert Rotter, CEO of NTT DATA, has consistently delivered growth under his tenure, and talked of the progress the firm has made in the past fiscal year.

“Under the umbrella of Japan-based NTT DATA Group, we are continuing to develop successfully into a globally recognised IT service provider,” he said. “Our customers value our extensive SAP expertise and our complementary offering of ServiceNow or Microsoft.”

The firm’s focus on SAP has also produced results, with the past fiscal year including the move by the firm to strengthen its channel position with the acquisition of mid-market specialist Sapphire back in November.

More acquisitions planned

The full year results update included a line stating that more acquisitions were planned for this year, but NTT DATA was not prepared to share details at this stage.

“As an SAP Global Strategic Service Partner, NTT DATA Group has significantly exceeded all sales targets with SAP products in the past fiscal year, particularly in the cloud sector,” said Rotter. “At NTT DATA Business Solutions, we expect to see continued strong growth in this area, and will take an ambitious approach to pursuing our sales targets.

“Artificial intelligence is another important field of innovation for us. Our SME customers are increasingly using AI solutions in their transformation, which is why we will continue to drive forward this topic based on SAP for them,” he added.

The firm indicated that it expected the momentum of the past fiscal year would continue and a sales increase of up to 6% was expected.

Jürgen Pürzer, chief financial officer at NTT DATA Business Solutions, said the firm was upbeat about the future. “After two record years, we don’t want to take a break,” he said. “We’re committed to consistently pursuing our growth and earnings targets. We expect sales growth of up to 6% on a comparable basis.

“To achieve this, we will continue to work with a global cost and efficiency programme, invest consciously on behalf of our customers, and offer a compelling range of comprehensive services and products,” said Pürzer.

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