NTT Q2 financials stable, but revenue continues to fall for mobile, regional and international

8 Nov 2019

Japanese behemoth Nippon Telegraph and Telephone Corporation (NTT) has published its financial results for the three months ended 30 September 2019 (Q2 FY2019/20), reporting 1.1% year-on-year growth in operating revenue to JPY2.974 trillion (USD27.27 billion), up from JPY2.941 trillion in the corresponding period of FY2018/19. The Japanese carrier again reported declining revenues from its ‘Mobile communications business’ (down 3.5% at JPY1.171 trillion), ‘Regional communications business’ (down 1.6% to JPY763.3 billion) and ‘Long-distance international communications business’ (down 1.8% to JPY562.0 billion), were offset by gains of 6.4% and 28.4% respectively at its ‘Data communications’ and ‘Other business’ segments. In the period under review, NTT’s operating profit decreased to JPY477.6 billion from JPY533.5 billion, while net profit fell to JPY267.1 billion, down 1.1% y-o-y from JPY270.0 billion reported at end-September 2018. Meanwhile, capital expenditure for the three months under review increased marginally from JPY361.1 billion to JPY368.0 billion; half-year CAPEX was JPY698.6 billion, compared to JPY682.5 billion in the year-earlier period.

In operational terms, NTT’s fixed line subscriber base increased in Q2 FY2019/20, as the company reported a total of 21.416 million FLET’S Hikari (including Hikari Collaboration Model) fixed broadband service users, equivalent to 565,000 net additions in twelve months, while ADSL subscribers decreased to 542,000 from 690,000 reported in September 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 4.747 million, up from 4.675 million a year earlier; going forward, the company estimates that the number will reach 4.787 million by end-March 2020, down from a previous forecast of 5.107 million. Finally, the group’s regional units NTT East and NTT West reported a total of 15.734 million telephony subscribers and 2.039 INS+Net users at end-September, down from 16.927 million and 2.230 million respectively a year earlier, as well as 18.369 million Hikari Denwa (VoIP) connections, up from 18.154 million.