NTT Corp 9M financials show solid growth in revenues and net income

14 Feb 2018

Nippon Telegraph and Telephone Corporation (NTT Corp) has released its consolidated financial results for the nine months ended 31 December 2017. For the period under review, operating revenues increased by 4.3% year-on-year to JPY8.72 trillion (USD80.82 billion) from JPY8.36 trillion, operating income edged up 0.1% to JPY1.32 trillion and net income rose 10.1% to JPY736.6 billion. NTT noted that growth was driven by its Long Distance and International Communications business, which contributed JPY1.63 trillion (up JPY61.3 billion) to group turnover and the Data Communications business segment, which generated JPY1.46 trillion (up JPY296.2 billion). Meanwhile, the carrier’s mobile arm NTT DOCOMO was responsible for JPY3.60 trillion of total turnover and its regional communications business segment for JPY2.38 trillion. EBITDA, meanwhile, slipped to JPY2.50 billion from JPY2.52 billion; EBITDA margin was 28.7%, compared to 30.1%. Capital spending in the nine-month period was JPY1.14 trillion, compared to JPY1.09 trillion in the year-ago period, of which DOCOMO received JPY403.6 billion to help drive its ongoing LTE rollout programme and regional units NTT East and NTT West around JPY331.7 billion – a large part of which is being committed to broadband and data projects.

On the operational front, NTT Corp closed out December 2017 with a total of 21.235 million high speed broadband subscribers, up from 20.691 million at December 2016, broken down as 819,000 FLET’S ADSL connections (down from 955,000), 20.457 million FLET’S Hikari fibre-optic broadband subscriptions (compared to 19.903 million) and 17.984 million IP telephony Hikari Denwa accounts (17.655 million). The group’s mobile arm NTT DOCOMO reported 75.678 million 3G and 4G mobile subscribers at the same date – up from 73.588 million a year earlier – of which 48.200 million are Xi-branded LTE users and the remainder using its FOMA (3G) service.