Mobile gains helped NTT swing into profit in fiscal fourth quarter

14 May 2010

Japan’s Nippon Telegraph and Telephone Corp (NTT Corp) has published its financial results for its fiscal fourth quarter ended 31 March 2010, swinging back into the black on a marked improvement from its mobile arm NTT DoCoMo. The state-backed behemoth booked net income of JPY73.3 billion (USD788.5 million) in the period under review, reversing a loss of JPY5.4 billion in the year-ago period. The group’s better-than-expected performance came on the back of DoCoMo which last month reported that net profit for the January-March quarter more than doubled to JPY75.4 billion, compared to a year ago. At the time the cellco said its bottom line was aided by the removal of amortisation costs related to its phased-out 2G network services.

NTT’s consolidated revenue for the fourth quarter fell marginally by 1% year-on-year to JPY2.67 trillion from JPY2.68 trillion previously, while operating profit leapt 78% y-o-y to JPY169.6 billion. For the current financial year to 31 March 2011, NTT is forecasting a 0.2% fall in revenues to around JPY10.16 trillion, a 4.2% rise in operating profit to JPY1.17 trillion and net income of around JPY500 billion, up 1.6% y-o-y. NTT will cancel about 16% of its own shares over the next two fiscal years, as part of efforts to return profits to shareholders, it said. The shares in question are valued at around JPY935 billion.