NTT first-quarter profits surge 24.7% to ‘new record level high’ 24.7%

6 Aug 2021

Japan’s Nippon Telegraph and Telephone Corporation (NTT) has published its financial results for the three months ended 30 June 2021 (Q1 FY2021/22), reporting a 4.6% year-on-year increase in operating revenue to JPY2.893 trillion (USD26.4 billion), up from JPY2.766 trillion in the corresponding period of FY2020/21. The Japanese carrier noted that revenues from its ‘Mobile communications business’ (up JPY61.5 billion), ‘Regional communications business’ (up JPY38.5 billion) and ‘Data communications’ (up JPY59.9 billion) were more than enough to offset drops for ‘Long-distance international communications’ (down JPY2.1 billion) and ‘Other business’ (down JPY4.2 billion) segments, and ‘Elimination of Intra-Segment Transactions (down JPY27.5 billion).

Whilst NTT’s operating profit decreased by 2.3% to JPY486.274 billion from JPY497.586 billion, net profit (attributable to NTT) surged 24.7% to JPY339.987 billion from the JPY272.638 billion reported at end-June 2020 – a new ‘record level high’. Sales derived from overseas operations, meanwhile, increased by 5.9%, or USD260 million, to over USD4.6 billion from USD4.4 billion in Q1 FY2020/21. Moreover, the group’s overseas operating income margin (including results from the global holding company, its subsidiaries and affiliates) continues to improve, increasing by 1.9pp to 4.1%, having edged up by 0.6pp to 2.2% in the corresponding year-ago quarter.

In operational terms, NTT’s fixed line subscriber base increased in Q1 FY2021/22, as the company reported a total of 22.817 million FLET’S Hikari (including Hikari Collaboration Model) fixed broadband service users, equivalent to 894,000 net additions in twelve months, while ADSL subscribers decreased to 359,000 from 455,000 reported in June 2020. NTT’s mobile arm DOCOMO reported a total of 82.916 million mobile subscribers, up from 80.615 million a year earlier, of which 5.351 million were 5G accesses compared to 149,000 at end-June 2020. Finally, the group’s regional units NTT East and NTT West reported a total of 13.858 million telephony subscribers at end-June, down from 14.878 million a year earlier, and 18.713 million Hikari Denwa (VoIP) connections, up from 18.542 million.