NTT revenues reach ‘record third-quarter levels’, but operating income down

6 Feb 2020

Japanese carrier Nippon Telegraph and Telephone Corporation (NTT Corp) reported operating revenues of JPY8.863 trillion (USD80.8 billion) for the nine months ended 31 December 2019 (FY2019.3Q), up 0.8% year-on-year from JPY8.795 trillion in the same period a year earlier, as profit attributable to the company inched up 0.6% to JPY796.922 billion from JPY792.127 billion. However, nine-month operating income declined 5.0% on an annualised basis, to JPY1.450 trillion, as falls in its Mobile Communications, Long-Distance & International, Data Communications and Other businesses were only partly offset by increases within the Regional Communications and ‘elimination of inter-segment transactions’ segments. More positively, the group reported that overseas sales contributed USD13.7 billion in FY2019.3Q, up 4.8% or USD700 million y-o-y, while the overseas operating income margin rose 0.6pp to 2.5%. For the full year ending 31 March 2020, NTT Corp remains bullish and expects to book attributable net profit of JPY855 billion, operating profit of JPY1.55 trillion and operating revenues of JPY11.89 trillion.

In operational terms, NTT’s fixed line subscriber base increased in April-December 2019, as the company reported a total of 21.563 million FLET’S Hikari (including Hikari Collaboration Model) fixed broadband service users, up from 20.995 million in twelve months, while ADSL subscribers decreased to 511,000 from 641,000 reported in December 2018. In video services, NTT’s Hikari TV and FLET’S TV users increased to a total of 4.779 million, up from 4.688 million a year earlier; going forward, the company estimates that the number will reach 4.787 million by end-March 2020. Finally, the group’s regional units NTT East and NTT West reported a total of 15.448 million telephony subscribers at end-December, down from 16.641 million a year earlier, and 18.448 million Hikari Denwa (VoIP) connections, up from 18.214 million.