Japanese telecoms group Nippon Telegraph & Telephone Corp (NTT) said consolidated revenues dipped marginally for its fiscal first-half ended 30 September 2008, but net income doubled, prompting it to revise upwards its full-year forecast. Revenues for 1H 2008/9 dipped 0.4% to JPY5.16 trillion (USD 52.64 billion) and operating expenses were JPY4.42 trillion, but operating income climbed 32% on the same period of last year from JPY563.9 billion to JPY745.1 billion. Pre-tax profit was JPY771.2 billion, up 35% from JPY573.4 billion previously and net income soared from JPY192.9 billion to JPY406.4 billion. In the wake of the financials announcement, NTT has revised its full year forecasts. The telco says that as a result of an anticipated drop in handset sales and other factors, it is trimming its operating revenues forecast by JPY170 billion to JPY10.58 trillion. NTT is also forecasting a fall in operating expenses on the back of a reduction in handset costs and is predicting operating income of JPY1.16 trillion and net income of JPY560 billion (up from its earlier forecast of JPY500 billion).
The telco’s regional fixed line operating divisions NTT East and NTT West contributed revenues of JPY2.01 trillion, down from JPY2.06 trillion in the year-ago period. The units’ combined operating income was JPY40.7 billion, up from JPY34.5 billion previously, aided by a 2.7% drop in operating expenses. As at 30 September 2008 the two subsidiaries had 10.09 million FLETS Hikari fibre-optic broadband customers between them, compared to 8.78 million at 31 March, and 6.91 million Hikari Denwa IP telephony subscribers. NTT’s mobile arm DoCoMo reported a 2.5% drop in half-year revenues to JPY2.27 trillion from JPY2.33 trillion a year ago. Operating income was up 41.2% at JPY576.9 billion and net income was up 40.6% at JPY346.7 billion, as DoCoMo ended the period with 53.94 million subscribers.
Meanwhile, the group’s NTT Data unit posted first-half revenues of JPY513.40 billion, up 10% y-o-y, while net income was JPY 22.76 billion, compared with JPY21.23 billion in the year-ago period. NTT Communications reported sales of JPY486.68 billion, versus JPY473.78 billion previously, although operating expenses were up 2%, it said. NTT Communications’ net income was JPY39.55 billion, down from JPY56.06 billion in 1H 2007/8.
Japan’s largest phone company by revenues and subscribers said it would lift planned capital investment for this business year by 1.4% to JPY2.15 trillion (USD22 billion), including plans to allot extra funds for its NTT Urban Development Corp unit.