NTT Corp nine-month net income climbs 11%, but revenue down

10 Feb 2017

Nippon Telegraph and Telephone Corp (NTT Corp) has published its financial results for the nine months ended 31 December 2016 (Q3/FY16) highlighting that net income attributable to shareholders increased by 10.7% year-on-year to JPY668.7 billion (USD5.95 billion) from JPY604.1 billion, although operating revenue declined 1.6%, or JPY134.9 billion, to JPY8.361 trillion.

Operating income, meanwhile, rose by 17.0% to JPY1.319 trillion in a period in which sales derived from overseas operations dropped 7.7% y-o-y to JPY1.313 trillion, and overseas operating income slipped 7.1% to JPY58.9 billion. Capital expenditure in the nine-month period topped JPY1.092 trillion, broadly unchanged from JPY1.039 trillion in Q3/FY15, of which JPY399.4 billion was spent at NTT DOCOMO (mobile), and JPY155.7 billion and JPY164.8 billion respectively for NTT East and NTT West – NTT Corp’s regional fixed/broadband operating units. For the full year ending 31 March 2017, NTT Corp has maintained its forecast for attributable net income of JPY770 billion, while operating income has been revised down to JPY1.44 trillion, from the previous estimate of JPY1.47 trillion and operating revenues are still expected to be JPY11.41 trillion.

Operationally speaking, NTT Corp closed out 2016 with a total of 20.858 million high speed broadband subscribers, up from 20.248 million at end-2015, broken down as 955,000 FLET’S ADSL connections (down from 1.090 million), 19.903 million FLET’S Hikari fibre-optic broadband subscriptions (compared to 19.157 million) and 17.655 million IP telephony Hikari Denwa accounts (17.335 million). The group’s mobile arm reported 73.588 million 3G and 4G mobile subscribers at the same date – up 5.7% on an annualised basis – of which 42.671 million are Xi-branded LTE users and the remainder using its FOMA (3G) service.