NTT 9M profit up 4.3%, but revenues slide

5 Feb 2021

Japanese carrier Nippon Telegraph and Telephone Corporation (NTT Corp) reported operating revenues of JPY8.738 trillion (USD82.99 billion) for the nine months ended 31 December 2020 (FY2020.3Q), down 1.4% from JPY8.863 trillion in the same period a year earlier, as profit attributable to the company increased 4.3% to JPY831.174 billion from JPY796.922 billion. Further, nine-month operating income reached JPY1.502 trillion, compared to JPY1.450 trillion a year ago, and pre-tax profits improved by 1.9% to JPY1.495 trillion. NTT noted a continued erosion in its Mobile Communications, Long-Distance & International and Other businesses segments, but gains in Data Communications and in particular Regional Communications, where turnover climbed 28.4% year-on-year, helped offset the drops. NTT Corp also reported that overseas sales contributed USD13.8 billion in FY2020.3Q, up 6.0% or USD800 million, from USD13.7 billion in FY2019.3Q, while the overseas operating income margin rose 0.5pp to 3.0%. For the full year ending 31 March 2021, 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 continued to increase in April-December 2020, as the company reported a total of 22.338 million FLET’S Hikari (including Hikari Collaboration Model) fixed broadband service users, up from 21.563 million in twelve months, while ADSL subscribers decreased to 403,000 from 511,000 reported in December 2019. In video services, NTT’s Hikari TV and FLET’S TV users increased to a total of 4.843 million, up from 4.779 million a year earlier; going forward, the company estimates that the number will reach 1.962 million by end-March 2021. Finally, the group’s regional units NTT East and NTT West reported a total of 14.365 million telephony subscribers at end-December, down from 15.448 million a year earlier, and 18.640 million Hikari Denwa (VoIP) connections, up from 18.448 million.