NTT reports marginal increase in revenue to USD25.7bn in Q1 FY2014/15

6 Aug 2014

Japan’s Nippon Telegraph and Telephone Corporation (NTT) has published its financial results for the three months ended 30 June 2014 (Q1 FY2014/15), reporting marginal 1.2% year-on-year growth in operating revenue to JPY2.640 trillion (USD25.73 billion), up from JPY2.609 trillion in the corresponding period of FY2013/14. The negative development was mainly attributed to a decline in revenues generated by its fixed telephony and mobile communications businesses, partially compensated by growth in its data communications and international operations. In the period under review, NTT’s operating income decreased by 14.6% to JPY297.979 billion, in line with expectations, while net profit decreased to JPY148.965 billion, down 10.6% y-o-y from JPY166.717 billion reported at end-June 2013. Meanwhile, the company 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 Q1 FY2014/15, as the company reported a total of 18.319 million ‘Hikari’ fixed broadband service users, equivalent to 269,000 net additions in twelve months, while ADSL subscribers decreased to 1.398 million from 1.751 million reported in June 2013. 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 4.086 million, up from 3.552 million reported in end-June 2013; going forward, the company estimates that the number will reach 4.546 million by end-March 2015.