NTT Corp reports 2.2% rise in revenue to USD27.4bn in Q1 FY2019/20

8 Aug 2019

Japan’s Nippon Telegraph and Telephone Corporation (NTT) has published its financial results for the three months ended 30 June 2019 (Q1 FY2019/20), reporting 2.2% year-on-year growth in operating revenue to JPY2.915 trillion (USD27.40 billion), up from JPY2.853 trillion in the corresponding period of FY2018/19. The Japanese carrier noted that declining revenues from its ‘Mobile communications business’ (down 17.4%) and ‘Regional communications business’ (down 22.4%) were offset by gains or 14.7%, 22.0% and 71.3% respectively at its ‘Long-distance international communications’, ‘Data communications’ and ‘Other business’ segments. In the period under review, NTT’s operating profit decreased by 6.0% to JPY505.194 billion from JPY537.226 billion, while net profit fell to JPY280.530 billion, down 3.2% y-o-y from JPY289.746 billion reported at end-June 2018. Sales derived from overseas operations, meanwhile, rose 2.9% on an annualised basis to around JPY4.8 billion.

In operational terms, NTT’s fixed line subscriber base increased in Q1 FY2019/20, as the company reported a total of 21.260 million FLET’S Hikari (including Hikari Collaboration Model) fixed broadband service users, equivalent to 540,000 net additions in twelve months, while ADSL subscribers decreased to 540,000 from 735,000 reported in June 2018. NTT also reported marginal growth in the number of subscriptions for its video services, as Hikari TV and FLET’S TV users increased to a total of 4.735 million, up from 4.648 million a year earlier; going forward, the company estimates that the number will reach 5.107 million by end-March 2020. Finally, the group’s regional units NTT East and NTT West reported a total of 16.048 million telephony subscribers at end-June, down from 17.207 million a year earlier, and 18.286 million Hikari Denwa (VoIP) connections, up from 18.092 million.

Japan, Nippon Telegraph and Telephone Corporation (NTT Corp)