NTT earnings for April-June quarter up 3.4%Nippon Telegraph & Telephone, Japan’s biggest telecommunications company, said Thursday its group net profit for the April-June quarter edged up 3.4% thanks to a lower tax burden resulting from a subsidiary’s share buyback.
Net profit increased to 149.57 billion yen ($1.26 billion) from 144.68 billion yen ($1.24 billion) the same period a year earlier, the Tokyo-based company said.
NTT said a share buyback by its mobile phone unit, NTT DoCoMo, reduced the group’s tax burden in the form of declined deferred tax liabilities at the mobile telecommunications unit.
The company’s group revenue slipped 1.5% to 2.585 trillion yen ($21.8 billion) from 2.624 trillion yen ($22 billion), with increased revenue from broadband Internet access services and its system integration business unable to make up for declined income from the fixed-line business.
Group operating profit sagged 17% to 299.23 billion yen ($2.52 billion) from 359.18 billion yen ($3.03 billion) due, the company said, to higher marketing and other operational costs in the mobile phone and system integration businesses.
NTT left unchanged its earnings outlook for the fiscal year through March. The company projects a group net profit of 460 billion yen ($3.87 billion) on revenues of 10.700 trillion yen ($90.1 billion).
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