Japanese telecom company Nippon Telegraph & Telephone (NTT) reported a 10% drop in net profit for the second quarter, primarily due to underperformance in its mobile and broadband businesses. The company’s net profit reached ¥295.1 billion ($1.97 billion) for the three-month period ending September 30, missing analysts’ estimate of ¥343.24 billion.
Mobile Business and Broadband Business Take a Hit
NTT’s mobile business experienced a 1.6% decline in operating profit, amounting to ¥288.1 billion as compared to the same period the previous year. Similarly, the broadband business witnessed a 17% decrease in operating profit, reaching ¥104.6 billion.
Steady Revenue Growth
Despite the decline in net profit, NTT achieved a slight 1.1% increase in second-quarter revenue, amounting to ¥3.253 trillion in comparison to the previous year.
Fiscal Year Forecast Remains Unchanged
NTT has decided to maintain its earnings forecasts for the fiscal year ending March 2024 without any amendments. The company predicts a 3.5% increase in net profit to ¥1.255 trillion, while projecting a 0.6% decline in revenue to ¥13.060 trillion.
