NTT reports 12.2% increase in net profit in FY2013

13 May 2014

Japan’s leading fixed line operator Nippon Telegraph and Telephone Corporation (NTT) has published its financial results for the twelve months ended 31 March 2014 (FY2013), reporting 2.3% year-on-year growth in revenue to JPY10.925 trillion (USD106.75 billion), up from JPY10.700 trillion in FY2012. In the period under review, NTT’s operating income increased by 1.0% to JPY1.213 trillion, due to growth in revenues from regional communications, long-distance and international communications businesses, partially offset by a decline in its mobile communications and data communications businesses. Meanwhile, the company’s net profit climbed to JPY585.5 billion, a 12.2% improvement on the JPY521.9 billion reported at end-March 2013, exceeding its FY2013 target by JPY500 million. NTT forecasts that its operating revenues will increase to JPY11.2 trillion in the fiscal year ending 31 March 2015, with projected net profit of JPY586.0 billion.

In operational terms, NTT’s fixed line subscriber base increased in FY2013, as the company reported a total of 18.050 million ‘Hikari’ fixed broadband service users, equivalent to an increase of 750,000 subscribers in twelve months, while ADSL subscribers decreased in the period under review to 1.483 million, down from 1.848 million reported in FY2012. NTT also reported marginal growth in the number of subscriptions for its video services, as Hikari TV and FLET’S TV users increased to a total of 3.984 million, up from the 3.457 million reported at end-March 2013; going forward, the company estimates that the number will reach 4.546 million at end-March 2015.