By Tomoko Hosaka and Shawn Schroter
TOKYO -- Nippon Telegraph & Telephone /zigman2/quotes/200718273/delayed JP:9432 +3.43% Corp. said Friday its net profit fell 12% in the first half, dragged down by sluggish profits at its mobile-phone and fixed-line telephone subsidiaries.
NTT posted a group net profit of ¥291.52 billion ($2.48 billion) in the first half ended Sept. 30, down from ¥330.73 billion a year earlier. Its group revenue increased 0.3% to ¥5.249 trillion from ¥5.231 trillion, and its group operating profit declined 9.4% to ¥691.52 billion from ¥763.38 billion. Operating profits at its two regional fixed-line phone subsidiaries fell in the first half from a year earlier as income from voice transmission services fell.
The Tokyo-based holding company for Japan's largest telecommunications group left unchanged its earnings forecast for this year through March, maintaining a group net profit outlook of ¥500 billion on group revenue of ¥10.8 trillion.
Its mobile-phone operator, NTT DoCoMo /zigman2/quotes/202061250/delayed JP:9437 +2.17% Inc., also suffered from a weaker operating profit in the first half, partly due to increased costs of enhancing services and lowering call charges in the face of stiff competition with two local rival carriers.
However, NTT Data /zigman2/quotes/207627127/delayed JP:9613 +2.86% Corp., a computer system integration service subsidiary, helped limit a fall in earnings at NTT. NTT Data's operating profit more than doubled, helped by higher sales of data communications systems to Japan's public sector and financial, manufacturing and logistics firms.
NTT's earnings results are based on U.S. accounting standards.