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Last updated on April 23, 2014 at 20:10 EDT

NTT Posts Profit Growth in April-June on Lower Costs

August 6, 2008

Tokyo, Aug. 6 (Jiji Press)–Nippon Telegraph and Telephone Corp. said Wednesday its group net and operating profits in April-June grew from a year before, thanks mainly to a decline in operating expenses at group company NTT DoCoMo Inc. .

In the first quarter of fiscal 2008, the telecommunications giant’s group net profit rose 16.7 pct to 175,534 million yen, while operating profit increased 24.3 pct to 372,063 million yen, on revenue of 2,593,588 million yen, up 0.3 pct.

NTT enjoyed profit increases thanks to a drop of 101.8 billion yen in costs related to mobile phone handset sales at NTT DoCoMo, whose operating profit accounted for more than 70 pct of the group’s total.

Group revenue rose thanks to revenue increases from communications network services for commercial users, mobile handset sales and packet data communications services. On the other hand, revenue from voice communications services decreased.

Among major units, revenues and operating profits declined at regional operators NTT East Corp. and NTT West Corp., due to sluggish voice communications services.

Long-distance carrier NTT Communications Corp. suffered falls in revenue and operating profit. But its net profit grew as it booked special gains of 11,626 million yen.

In April-June, the number of subscriptions to the group’s fiber- optic broadband services showed a net increase of 763,000.

NTT President Satoshi Miura told a press conference that the earnings for April-June were in line with forecasts.

He said the company cannot necessarily be optimistic about the full-year earnings prospects, as DoCoMo is expected to face tougher industry competition and earnings will be affected by economic conditions.

NTT’s earnings are based on U.S. accounting standards.[EARNINGS]END

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