NTT net income down on lower DoCoMo earnings

5 Aug 2009

Japan’s largest telecoms group Nippon Telegraph & Telephone Corp (NTT) reported a 20% fall in first-quarter net profit and attributed the fall to lower income at its mobile division NTT DoCoMo. The telco’s net income for the three months ended 30 June 2009 totalled JPY139.6 billion (USD1.47 billion), down from JPY175.5 billion in the corresponding period a year ago. Operating profit slipped 12% year-on-year to JPY325.8 billion and revenues dropped marginally by 3.5% to JPY2.5 trillion. The Tokyo-based operator, which generates roughly three-quarters of its profit from DoCoMo, is forecasting full year operating income unchanged on FY2008/09 undermined by an anticipated fall in turnover at its core business operations. Last month the mobile arm reported that net income attributable to the company fell 15.1% year-on-year to JPY147.4 billion (USD1.6 billion) in ts fiscal first quarter ended 30 June 2009. Sales were also down, from JPY1.17 trillion to JPY1.08 trillion, while operating income came in at JPY251.8 billion, a 15% decline from last year. The cellco cited Japan’s maturing wireless market and intensifying competition as reasons behind the falls. DoCoMo did, however, leave its forecast for the year ending March 2010 unchanged: revenue is expected to reach JPY4.38 trillion with operating income of JPY830 billion. In May DoCoMo cut its minimum data charges to JPY490 per month and plans to drop this again to JPY390 starting 1 August, as it looks to up data usage to offset falling voice traffic. However, the lower tariff charges are expected to reduce full year operating profits by JPY40 billion in FY2009/10, it said.

Japan, NTT (NTT East & NTT West), NTT DOCOMO