Tuesday, November 9, 2004

NTT Reports Six Month Results

NTT reported revenue of 5.3 trillion yen (US$50 billion) for the six month period ending 30-September-2004, down 2% compared to a year earlier. Group net profit for the six months was 344.6 billion yen (US$3.3 billion), up 3% compared to a year earlier. Some highlights:

  • As of the end of September 2004, NTT East had 632,000 B FLET'S optical access subscribers, an increase of 206,000 from the end of March 2004, and 2,620,000 FLET'S ADSL subscribers, an increase of 338,000 from the end of March 2004.

  • NTT West's FLET'S ADSL customers came to 2.12 million and B-FLET'S customers numbered 580,000.

  • Both NTT East and NTT West began offering faster ADSL services, with maximum download speeds of approximately 47 Mbps and maximum upload speeds of approximately 5Mbps.

  • NTT Communications reported six months operating revenues of 525.3 billion yen, down 1.8% or 9.8 billion yen year on year. Revenues from voice communications services declined due to the shrinking market for fixed-line telephone services and intensifying competition in the IP telephony market. In Japan, NTT Com supported revenue levels by securing more relay traffic for fixed-line-to-mobile communications. In international telephone services, the company's revenue strategy focused on growing market share through aggressive marketing and reduced call rates. Operating revenues for voice communications services came to 229.8 billion yen, down 6.3% or 15.4 billion yen year on year.

  • NTT Comm's data communications service revenues grew steadily. As of September 2004, approximately 4.36 million users were subscribing to NTT Com's OCN ISP service, which has been enhanced with high-speed ADSL. Operating revenues for data communications services came to 168.1 billion yen, up 11.7% or 17.5 billion yen year on year.

  • NTT Comm's leased circuit service revenues declined due to competition from cheaper IP-VPN and VPN services that leverage the Internet. For those customers who place maximum priority on quality, reliability and security, however, NTT Com launched a simple, highly reliable leased circuit service called Giga Stream. Operating revenues for leased circuit services came to 70.1 billion yen, down 20.4 % or 18 billion yen year on year.