NTT grows Q1 profit 2.3%

Japanese telecommunications group NTT posted a profit of JPY 156.6 billion for the first quarter ended 30 June, up 2.3 percent from JPY 153.1 billion in the year-ago period. Operating revenues went up 1.5 percent to JPY 2.58 trillion from JPY 2.54 trillion a year earlier. Expenses rose 1.6 percent to JPY 2.22 trillion and operating income stood at JPY 352.3 billion, up 0.9 percent year-on-year. 

The regional communications business (NTT East and West) saw a decrease in revenues and operating income due to, among other things, a decrease in voice revenues. The drop in voice revenues also affected the long-distance and international communications business. The mobile business grew revenues and operating income on higher packet service revenues. Meanwhile, the data communications business also grew revenues and income on an increase in the number of consolidated subsidiaries. 

NTT group added 307,000 customers for its fibre optic service called Flets Hikari in the quarter, to bring its total to 16.87 million. The company also had 14.25 million Hikari Denwa customers, after it added 351,000 new customers in the period to the optical IP telephone service. The ADSL customer base continued to contract, as NTT shed 115,000 customers to end with a total of 2.21 million. Traditional voice service subscribers fell by 650,000 lines to 26.87 million. The company's mobile unit, NTT Docomo, ended the quarter with 60.40 million subscribers, which includes 3.32 million Xi (LTE) customers. 

For the full financial year, NTT expects revenues of JPY 10.75 billion and a profit of JPY 575 billion.