NTT books 34% increase in 9M net income; operating revenue up 4%

5 Feb 2016

Japan’s biggest telecoms carrier by subscribers and revenue, Nippon Telegraph and Telephone Corporation (NTT), has published its financial results for the nine months ending 31 December 2015. The group reported that operating revenues increased by 3.8% year-on-year to JPY8.495 trillion (USD72.269 billion) from JPY8.183 trillion in its 9M 2014, as operating income climbed 23.7% to JPY1.127 trillion and net income surged 34.3% to JPY604.1 billion from JPY449.9 billion in the year-earlier period. The state-backed telco noted that the strong performance in the nine-month period under review continues a trend of six years of consecutive upward growth, helped by its medium-term management strategy entitled ‘Towards the Next Stage 2.0,’ implemented in May last year, which is designed to put in place measures to embark on a profit growth track by accelerating its self-transformation towards becoming what it terms a ‘Value Partner’. Towards the Next Stage 2.0 is, amongst other things, focused on expanding NTT’s global business and increasing profit generation, optimising its domestic network businesses and enhancing profitability, and achieving sustainable growth.

NTT closed out 2015 with a total of 19.157 million FLETS Hikari (including Hikari Collaboration Model) fibre broadband subscribers, up 2.4% (or a net 442,000) from 18.716 million at end-March 2015. The gains in fibre-optic users continue to be offset by a decline in FLETS ADSL users, which fell to 1.090 million from 1.219 million previously. In addition, NTT reported a total of 17.335 million Hikari Denwa (IP telephony) customers, up a net 227,000 connections from 17.103 million, plus 4.464 million video services users (including 1.417 million FLETS TV subscriptions), and 23.121 million telephone subscriber lines (including INS-Net), down from 24.344 million at end-March.