TOKYO: Nippon Telegraph and Telephone Corp (NTT), the worlds largest telecoms group by sales, has reported a nearly 12-fold jump in first-half net profit, thanks to cost cutting, with no big overseas losses hurting its bottom line this time.
And for the full year to next March, NTT has raised its net profit forecast by 28% to 582 billion yen (US$5.35bil), which would be more than double the figure for the last business year.
NTT, which fully owns local and long-distance units and has majority stakes in mobile carrier NTT DoCoMo Inc and systems integrator NTT Data Corp, said its group net profit for the six months to Sept 30 rose to 383.57 billion yen from 33.16 billion in the equivalent period last year.
NTTs landline operation is struggling to cope with fierce price competition and dwindling voice traffic as customers migrate increasingly to mobile phones and Internet protocol (IP) telephony, which offers cheaper calls based on Web technology.
In a bid to shore up profitability, NTT plans to cut 4,000 jobs this year, or 1.9% of its workforce.
NTT's first-half operating profit, which shows its core earnings strength, edged up 1.6% to 836.65 billion yen.
These are pretty impressive numbers. Despite a fall in DoCoMos operating profit, NTT managed to boost its group operating figure thanks to bigger profits at fixed-line operations, said Hironobu Sawake, an analyst at UFJ Tsubasa Securities. Reuters