NTT reports fall in profit for October-December period

5 Feb 2010

Japan’s largest telecoms group Nippon Telegraph and Telephone Corp (NTT Corp), which is 34%-owned by the state, today reported consolidated net profit of JPY136.75 billion (USD1.53 billion) for the fiscal third-quarter ended 31 December, down from JPY137.73 billion a year ago. The former monopoly operator attributed the fall to accounting changes, a decline in sales at its fixed line division and the impact of mobile price cuts. Group revenue dipped 1.6% year-on-year from JPY2.57 trillion to JPY2.53 trillion, although the telco maintained its full-year outlook, forecasting net profit of JPY460 billion on revenue of JPY10.17 trillion. Operating profit, or sales minus the cost of goods sold and administrative expenses, climbed 12% y-o-y to JPY301.3 billion, broadly in line with analyst estimates for operating income of between JPY301.2 billion and JPY302.3 billion respectively, and revenue ranging from JPY2.51 trillion to JPY2.56 trillion.