NTT has posted net income of JPY156.5 billion (USD2 billion) for the three months ending 30 June 2012, a 2.3% increase year-on-year. The gain comes on the back of 2% growth in sales to JPY2.57 trillion and a 1% climb in operating income to JPY352.3 billion. The results were boosted by smartphone sales surging 92% to 2.49 million units coupled with data revenue growth of 9%. Dragging on the results was a 15% fall in domestic fixed line voice call revenues as fixed line subscribers fell 9%; NTT’s president Hiroo Unoura said the difficult wireline market conditions were a sign of ’the proliferation of smartphones and the expanding coverage areas of competitors’. Even the company’s Hikari fibre-optic broadband service was impacted, recording subscriber growth of 300,000, some 43% down year-on-year as a growing number of subscribers are said to have cancelled their service as they access the internet via smartphones instead.
The Japanese giant left guidance for the full year ending March 2013 unchanged. NTT forecasts group sales to rise 2% to JPY10.75 trillion, while net income is expected to grow 23% to JPY575 billion.