NTT Corp full-year revenue flatlines, profits down 5%

17 May 2019

Nippon Telegraph and Telephone Corporation (NTT Corp), Japan’s largest telecoms group by subscribers and revenue, reported operating revenues of JPY11.880 trillion (USD108.3 billion) for the twelve months ended 31 March 2019 (FY2018/19), up 0.8% from JPY11.782 trillion in FY2017/18, as ‘the information and telecommunications market saw increased usage of a variety of digital services as a result of rapid advances in such areas as cloud services, IoT, big data and AI’. Operating income improved 3.2% year-on-year to JPY1.694 trillion from JPY1.641 trillion, but net profit attributable to shareholders fell 4.8% to JPY854.561 billion from JPY897.887 billion.

Broken down by segment, NTT’s Data communications business recorded a 5.8% increase in full-year revenues to JPY2.164 trillion, Mobile communications turnover rose 1.7% to JPY4.841 trillion, while Long-distance and International communications services revenues climbed 1.6%. On a less positive note, the group said that overall revenues were adversely impacted by a 2.5% drop in the Regional communications business to JPY3.152 trillion from JPY3.232 trillion. For the year ending 31 March 2020 (FY2019/20), the Japanese carrier expects to see a decline of around JPY49.8 billion in its operating revenues to JPY11.830 trillion, while operating income is forecast to fall JPY143.8 billion to JPY1.550 trillion and net profit is expected to edge up to JPY855.0 billion.

In its financial report the group confirmed: ‘In light of these circumstances, during the fiscal year under review, NTT formulated and announced its new “Your Value Partner 2025” Medium-Term Management Strategy, with the aim of working together with our partners to promote initiatives to resolve social issues in its role as “Your Value Partner.”’ The carrier’s strategy initiatives include the promotion of a B2B2X Model and the rollout of 5G, amongst others.

The group closed out 31 March 2019 with a total of 21.078 million broadband subscriptions, up from 20.533 million y-o-y, broken down as 12.690 million Hikari Collaboration Model and 8.338 million FLET’s Hikari users; it also had 3.001 million IPTV customers (Hikari TV). Meanwhile, NTT’s mobile arm NTT DOCOMO reported 78.453 million subscribers on its books, including 55.872 million 4G (Xi) accounts, and regional fixed line units NTT East and NTT West reported a collective fixed telephony base of 18.500 million (down from 20.246 million), and 18.244 million VoIP lines (Hikari Denwa).

Japan, Nippon Telegraph and Telephone Corporation (NTT Corp)