NTT's Profit Falls on Weaker Mobile, Broadband Earnings — Update

By Kosaku Narioka

Nippon Telegraph & Telephone's second-quarter net profit fell due to weaker earnings from its mobile and broadband businesses.

The Japanese telecom company said Tuesday that net profit dropped 10% from a year earlier to 295.1 billion yen ($1.97 billion) for the three months ended Sept. 30. That missed the estimate of Y343.24 billion in a poll of analysts by FactSet.

Operating profit from its mobile business declined 1.6% from a year earlier to Y288.1 billion as average revenue per user fell to Y4,000 a month from Y4,080.

The number of mobile subscribers increased 3.1% to 88.5 million, while the number of 5G-services subscribers climbed 55% to 24.8 million.

Operating profit from its broadband business fell 17% to Y104.6 billion as the number of subscribers increased 0.6% to 23.6 million at the end of September.

Meanwhile, operating profit from its cloud and data-center business rose 25% to Y63.6 billion.

NTT also said it had invested in Michigan-based tech company May Mobility and acquired exclusive rights to sell its autonomous-driving system in Japan.

Second-quarter revenue increased 1.1% from a year earlier to Y3.253 trillion.

NTT kept its earnings forecasts for the fiscal year ending March 2024 unchanged. It continues to project that net profit will climb 3.5% to Y1.255 trillion and revenue will decline 0.6% to Y13.060 trillion.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

November 07, 2023 01:11 ET (06:11 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.