NTT’s first-half net profits up 11.7%, driven by internet gains

10 Nov 2010

Nippon Telegraph and Telephone Corp (NTT) booked group net profit of JPY315.24 billion (USD3.89 billion) in its fiscal first half ended 30 September 2010, up 11.7% from a year earlier, driven in part by an increase in customers for its internet services. NTT reported operating profit of JPY726.96 billion in the six-month period, up 12.4% year-on-year, on flat-line operating revenue of JPY4.99 trillion. For the full year to 31 March 2011 the group is forecasting net profit of JPY500 billion, unchanged from its earlier guidance. However, NTT revised upwards its forecast for operating profit to JPY1.18 trillion from JPY1.17 trillion and trimmed its revenue projection to JPY10.14 trillion from JPY10.16 trillion previously.

NTT said that despite revenue increasing slightly in the second fiscal quarter (up 0.2%), its wireless arm NTT DoCoMo was having a difficult time in trading, with the top line impacted by intense competition and a fall in handset sales. Nevertheless, DoCoMo increased its mobile subscriber base by 1.4% to 56.9 million customers, it said. NTT’s fixed line telephone business (including regional units NTT East and NTT West) was broadly unchanged as a 7.5% growth in broadband users was cancelled out by a decrease in fixed line customers and lower fixed voice related revenue. In the domestic long-distance and international business (DLD/ID) segment, revenue declined 0.6% as improvements in the corporate solutions business failed to balance out the declines in fixed voice and IP related revenue.