Nippon Telegraph & Telephone Reports Q2 Net Profit Decline

Nippon Telegraph & Telephone (NTT), Japan's leading telecommunications company, has announced a 10% drop in net profit for the second quarter of the fiscal year ending March 2024. This decline can be attributed to weaker earnings from its mobile and broadband businesses.

According to NTT's financial report released on Tuesday, the net profit for the three months ended September 30 reached 295.1 billion yen ($1.97 billion), falling short of the estimated 343.24 billion yen predicted by analysts in a FactSet poll.

In terms of operating profit, NTT's mobile business witnessed a decrease of 1.6% compared to the previous year, amounting to 288.1 billion yen. Similarly, its broadband business experienced a significant decline of 17% with an operating profit of 104.6 billion yen.

Despite these challenges, second-quarter revenue showed a modest growth of 1.1% from the previous year, reaching 3.253 trillion yen.

Looking ahead, NTT has decided to maintain its earnings forecasts for the fiscal year ending March 2024 unchanged. The company projects a 3.5% increase in net profit, expecting it to reach 1.255 trillion yen, while anticipating a slight decline of 0.6% in revenue to 13.060 trillion yen.