NTT books 11.5% dip in full-year net income, as operating costs rise

20 May 2015

Japan’s biggest communications service provider NTT Corporation has published its financial results for the twelve months ended 31 March 2015 (FY2014) reporting 1.6% year-on-year growth in revenue to JPY11.095 trillion (USD92.3 billion) on the back of growth at its overseas businesses, up from JPY10.925 trillion in FY2013 – its fifth consecutive year of rising turnover. In the period under review, NTT’s operating income decreased by 10.6% to JPY1.084 trillion, due to a decline in income at its mobile communications business, although less positively, operating expenses climbed 3.1% year-on-year to JPY10.011 trillion. Meanwhile, the company’s net profit dropped by 11.5% to JPY518.1 billion from JPY585.5 billion in the prior financial year, falling short of its full year net profit target of JPY529.0 billion. NTT forecasts that its operating revenues will increase to JPY11.350 trillion in the fiscal year ending 31 March 2016, with projected net profit of JPY630.0 billion.

In operational terms, NTT closed out March 2015 with a total of 18.716 million FLETS Hikari fixed broadband service users, up from 18.050 million twelve months earlier, while FLETS ADSL subscribers decreased in the period under review to 1.219 million, down from 1.483 million reported at 31 March 2014. NTT also reported marginal growth in the number of retail and wholesale subscriptions for Hikari Denwa IP telephony services at its NTT East and NTT West units, which increased to 17.108 million from 16.256 million in the year under review. Furthermore, its video services were also proving popular, as Hikari TV and FLET’S TV users increased to a total of 4.359 million, up from the 3.984 million reported at end-March 2014; going forward, the company estimates that the number of TV users will reach 4.522 million at end-March 2016.