NTT’s July-September slumps 38% on weak mobile demand

9 Nov 2009

Japan’s largest telecoms group Nippon Telegraph and Telephone (NTT) today reported a 38.2% drop in net income for its fiscal second quarter ended 30 September 2009, as weak demand for its mobile phone services impacted on the group’s bottom line. In the period under review, NTT posted net profits of JPY142.7 billion (USD1.59 billion), compared with JPY230.8 billion in the corresponding year-ago period, as revenues slipped to JPY2.495 trillion from JPY2.571 trillion. The group attributed the weak financial results to a fall in demand for mobile services at NTT DoCoMo, in which it owns around 63%. The mobile division recently reported a 20% year-on-year dip in net profit for the three months ended 30 September, due to a sustained fall in call revenues and weaker demand for new mobile handsets from users. In the wake of its announcement, NTT has trimmed its full-year revenue outlook to 31 March 2010 from JPY10.300 trillion to JPY10.170 trillion.