NTT H1 net income up 26% despite declining revenues

14 Nov 2016

Nippon Telegraph and Telephone Corp (NTT Corp) has published its half-year financial results for the period ended 30 September 2016, with net income attributable to shareholders climbing 26.2% to JPY476.10 billion (USD4.46 billion) from JPY377.32 billion in the year-ago period, despite a 1.2% year-on-year fall in operating revenue to JPY5.524 billion. Operating income, meanwhile, rose by 26.3% to JPY926.5 billion. The telco reported strong growth of mobile subscribers at NTT DOCOMO (up a net 1.98 million at 72.94 million), while fibre-to-the-home (FTTH) connections rose a net 440,000 to 19.70 million. Additionally, the company reported that the number of subscribers to its video services increased to 4.505 million, of which 3.041 million are Hikari TV and 1.464 million are FLETS TV users.

Looking ahead, for the full year ending 31 March 2017 NTT Corp expects attributable net income of JPY770 billion, or JPY376 per share, representing a growth of JPY20 billion from its earlier forecast. Operating income is now expected to be JPY1.47 trillion, up JPY40 billion from an earlier estimate, and operating revenues are now expected to reach JPY11.41 trillion, down JPY40 billion from NTT’s initial forecast.