NTT net income tops JPY538bn despite slowdown

14 May 2009

Nippon Telegraph and Telephone Corp (NTT) yesterday reported consolidated net profit of JPY538.7 billion (USD5.6 billion) for its fiscal year ended 31 March 2009, down 15.2% from the previous year, but still relatively strong given the economic recession in the country. The telco reported operating profit of JPY1.11 trillion for FY2008/09, down 14.9% from the previous year, on group turnover of JPY10.42 trillion, down 2.5% y-o-y. NTT said its stronger-than-expected performance was the result of cost-cutting measures and solid results from its mobile division DoCoMo which was responsible for the lion’s share of group profit following a decision to cut fees paid to agents and reduce sales of mobile phones. DoCoMo, posted revenue of JPY4.45 trillion, down 5.6% year-on-year as increased price competition offset the benefits of a rise in subscriber levels. For the current fiscal year, NTT forecasts revenues of JPY10.3 trillion, operating profit of JPY1.11 trillion and net profit of JPY460 billion.