NTT first-quarter net down 1.8%

8 Aug 2011

Nippon Telegraph & Telephone Corp (NTT) has reported a 1.8% year-on-year fall in net income for its fiscal first quarter ending 30 June 2011, attributed in part to a falling contribution from its fixed line business. Japan’s state-backed telecoms giant booked net profit of JPY153.1 billion (USD1.958 billion) in April-June, down from JPY155.9 billion in the year-ago quarter. Quarterly revenue increased by 1.5% year-on-year to JPY2.537 trillion from JPY2.499 trillion, driven by a strong performance from its long-distance and international telecoms operations. Operating profit of JPY349.28 billion rose 2.8% from JPY339.65 billion aided by a solid profits contribution from mobile arm NTT DoCoMo.

NTT reported that regional operating unit NTT East booked quarterly revenue of JPY454.1 billion, down 3.4% y-o-y, and counterpart NTT West posted a similar 3.4% fall in turnover to JPY413.9 billion; falling voice revenue dragged down both units’ results. NTT said it added a total of 536,000 fibre-optic (FLETS Hikari) customers in the first quarter, lifting its total to 15.60 million by end-June. However, the ADSL base continued to fall, shipping a net 142,000 lines for a total of 2.72 million. NTT also had 12.57 million Hikari Denwa optical IP telephony customers at the end of the period under review, up a net 453,000 customers, although traditional (PSTN) voice telephony lines fell by 708,000 to 29.56 million.