Nippon Telegraph and Telephone Corp. on Wednesday reported a decline in sales and pretax profit on a non-consolidated basis for the business year that ended March 31 following a decrease in revenue from ordinary telephone use.
NTT's pretax profit dropped 33.4 percent from the previous year to 237.4 billion yen and reported sales fell 6.1 trillion yen, down 2.9 percent. The country's largest telecom carrier saw a decline in sales and pretax profit for two consecutive years.
However, the carrier's net profit grew 118.6 percent to 386.2 billion yen due to revenue from the sales of stocks of NTT Mobile Communications Network, Inc. (NTT DoCoMo). NTT DoCoMo went public last October and brought 823.9 billion yen in extraordinary profit to NTT.
Among reasons for the unfavorable sales are declining toll call rates and the decrease of ordinary telephone subscribers, NTT President Junichiro Miyazu said. The number of ordinary telephone subscribers dropped 1.9 million to 58.5 million during the business year.
On a consolidated basis, NTT posted 648.6 billion yen in pretax profit, up 8 percent from the previous year, on 9.7 trillion yen in sales. The group's net profit was 602.7 billion yen, up 107.9 percent for the same period.
NTT reported the increase in sales and a pretax profit on a consolidated basis for five consecutive years, according to NTT officials.