NTT Corp reports flat revenue, profits in FY2019/20

15 May 2020

Nippon Telegraph and Telephone Corporation (NTT Corp), Japan’s largest telecoms group by subscribers and revenue, reported operating revenues of JPY11.899 trillion (USD111.18 billion) for the twelve months ended 31 March 2020 (FY2019/20), up just 0.2% from JPY11.880 trillion in FY2018/19, as the market continued to witness ‘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’. However, it also noted the need to ‘take steps such as strengthening information security against increasingly sophisticated and complex cyberattacks, reinforcing anti-disaster measures, and contributing to the protection of the environment’, and pointed out that the COVID-19 outbreak is impacting on its future guidance. Operating profit fell 7.8% year-on-year to JPY1.562 trillion from JPY1.694 trillion, pre-tax profits slipped 6.1% to JPY1.570 trillion and net profit attributable to shareholders was broadly flat at JPY855.306 billion from JPY854.561 in FY2018/19.

Broken down by segment, Mobile communications turnover fell 3.9% to JPY4.651 trillion as the segment’s operating profit declined 15.7% to JPY854.7 billion. NTT’s Regional communications business reported full-year revenue of JPY3.080 trillion, down 2.3% year-on-year, although operating profit increased by 7.6% to JPY388.3 billion, while Long-distance and International communications services revenues fell 3.2% to JPY2.206 trillion with an operating profit of JPY103.6 billion (up 3.4%). NTT’s Data communications business, meanwhile, recorded a 4.8% increase in full-year revenues to JPY2.267 trillion and operating profit of JPY130.9 billion (down 11.4%).

For the year ending 31 March 2021 (FY2020/21), the Japanese carrier said: ‘NTT anticipates that new SI orders and sales of various types of services will be affected by the impact of the COVID-19 outbreak. However, because we cannot predict the termination of the outbreak or the arrival of a second wave and cannot reasonably estimate the amount of the impact of COVID-19, we have decided to postpone making financial forecasts for the fiscal year ending March 31, 2021 at this time. NTT intends to promptly announce its financial forecasts as soon as it is possible to reasonably estimate the amount of the impact.’

The group closed out 31 March 2020 with a total of 21.658 million broadband subscriptions, up from 21.078 million y-o-y, broken down as 13.888 million Hikari Collaboration Model and 7.770 million FLET’s Hikari users; it also had 17.085 million telephone accesses and 18.503 million IP telephony customers (Hikari Denwa) for regional fixed line units NTT East and NTT West. Meanwhile, NTT’s mobile arm NTT DOCOMO reported 80.326 million subscribers on its books, including 61.664 million 4G (Xi) accounts and 14,000 5G subscribers.