NTT posts Q1 operating profit of 24% on mobile, data growth

6 Aug 2008

Japan’s largest telecoms company by revenues Nippon Telegraph and Telephone Corp (NTT) today reported first-quarter operator profit of 24%, driven by a strong performance from its mobile arm NTT DoCoMo and systems integration unit NTT Data Corp. The group said operating profit was JPY372.06 billion (USD3.4 billion) in the three months to 30 June, up from JPY299.23 billion in the same period of 2007. Net profit climbed 35.1% year-on-year to JPY175.53 billion on broadly flat revenues of JPY2.59 trillion. DoCoMo, which accounts for around 70% of its parent’s consolidated revenues, recently reported its first operating profit growth in three years for the April-June 2008 quarter, bolstered by lower handset subsidies and other cost-cutting measures. NTT Data also reported a 5.4% growth in its first quarter operating profit, it said. The telecoms behemoth reiterated its full year earnings guidance however, forecasting a net profit of JPY500 billion, operating profit of JPY1.16 trillion and revenues of JPY10.75 trillion for the year to 31 March 2009.