NTT reports an 11.9% fall in 1H profits

10 Nov 2006

Japanese telecoms behemoth Nippon Telegraph and Telephone Corp (NTT) has reported an 11.9% year-on-year fall in fiscal first half net profit for the six months to 30 September 2006, attributing the decline in part to higher spending from its mobile arm NTT DoCoMo which is trying to migrate subscribers to its 3G service FOMA. NTT recorded net profits of JPY291.51 billion (USD2.47 billion) for the six-month period, down from JPY330.73 billion a year ago, while operating profit dipped by 9.4% to JPY691.52 billion. DoCoMo reported a 20% drop in operating profits in its fiscal first half, associated with its efforts to increase its 3G user base; it is trying to transfer two-thirds of its customer base to FOMA by March 2007, it said. Group sales were up marginally however, to JPY5.25 trillion from JPY5.23 trillion previously, despite lower call revenues at its fixed line division. Operating expenses rose 2% from a year earlier to JPY4.56 trillion for the April-September period, outpacing the growth in sales.