NTT Corp full year profit climbs 13.7%; revenue up to JPY11.8tn

16 May 2018

Nippon Telegraph and Telephone Corporation (NTT Corp) has released its financial results for the fiscal year ended 31 March 2018, highlighting a 13.7% rise in net income to JPY909.695 billion (USD8.265 billion) from JPY800.129 billion a year ago, as operating revenues increased 3.6% to JPY11.799 trillion, operating profit improved by 6.7% to JPY1.643 trillion and pre-tax profits reached JPY1.756 trillion (+14.9%). In its press release, Japan’s largest telco by subscribers noted a change in the domestic market typified by ‘the increased spread and market penetration of devices that utilise fixed line and broadband, as well as the continued emergence of new services made possible by the evolution of technologies such as cloud services, IoT, Big Data, and AI’. Full-year EBITDA, meanwhile, rose to JPY3.240 trillion from JPY3.237 trillion – although the EBITDA margin narrowed 0.1pp to 27.4% – and capital expenditure was broadly unchanged at JPY1.700 trillion, with JPY570 billion allocated to mobile arm NTT DOCOMO, JPY545.0 billion to its regional communications business (i.e. NTT East and NTT West), JPY252.0 billion on long-distance and international, JPY176.0 billion on data communications and JPY157.0 billion on ‘other’ areas. For the current fiscal year ending 31 March 2019, NTT Corp is forecasting operating revenues of JPY11.830.0 trillion, operating income of JPY1.690 trillion, income before income taxes of JPY1.686.0 trillion and income attributable to owners of parent of JPY880.0 billion.

Operationally speaking, NTT Corp closed out 31 March 2018 with a total of 21.313 million high speed broadband subscribers, up from 20.972 million at 31 March 2017, broken down as 780,000 FLET’S ADSL connections (down from 919,000) and 20.533 million FLET’S Hikari fibre-optic broadband subscriptions (up from 20.053 million previously). It also ended the period with 19.869 million voice telephony subscribers (21.336 million) and 18.032 million IP telephony Hikari Denwa accounts (17.759 million). The group’s mobile arm NTT DOCOMO reported 76.370 million 3G and 4G mobile subscribers at the same date – up from 74.880 million a year earlier – of which 50.097 million are Xi-branded LTE users and the remainder using its FOMA (3G) service.