NTT doubles profit but warns next year will be less rosy

14 May 2004

Nippon Telegraph & Telephone Corp (NTT) has said that its net profit more than doubled in its fiscal 2003, buoyed by the sale of a stake in mobile operator NTT DoCoMo. Net income rose to JPY643.9 billion (USD5.62 billion) in the twelve months to 31 March 2004, from JPY233 billion the year before, including a JPY189.5 billion gain from the sale of DoCoMo shares in the last business year. However, operating profit at NTT’s two fixed line businesses declined and its total wireline customer base fell 0.4% to 50.9 million. The telco also issued a gloomy forecast for the forthcoming year, saying that profit growth will stall and sales decline due to rising competition. Net income will rise 1% to JPY650 billion in fiscal 2004, whilst sales will drop 1.8% to JPY10.9 trillion, the company said in a statement.