| 1. Analysis of consolidated results | |||||||||
(1) Consolidated results In the first quarter of the fiscal year ending March 31, 2009, with the goal of becoming a group creating new services for customers, NTT Group endeavored to expand its broadband and ubiquitous services. In the fixed-line communications market, as both the expansion of optical services and migration from existing fixed-line phones to optical IP phones advanced, NTT Group focused its efforts on expanding sales of such services as FLET'S Hikari and Hikari Denwa. Efforts directed towards expanding services, including commencement of IP retransmission of terrestrial digital broadcasts for FLET'S Hikari Next subscribers, caused the number of FLET'S Hikari subscriptions to reach 9.54 million. In the mobile communications market, as competition among communications businesses intensified in forms such as rate competition and market entries by MVNOs*, NTT Group made an effort to introduce new products such as "FOMA 906i" and to expand its discount services. Also, as a result of its marketing efforts to improve brand loyalty of customers while at the same time introducing "New DOCOMO Commitments," the number of subscriptions for cellular phones increased to 53.63 million of which 84.3 % represents FOMA subscriptions. For corporate customers, NTT Group worked to provide high value-added solutions on a customer and industry basis, and strengthened its ability to support the global business activities of its customers. As a result of these efforts, NTT Group's consolidated operating revenues for the first quarter of the fiscal year ending March 31, 2009 were 2,593.6 billion yen. Despite a decrease in fixed and mobile voice related revenues, this was the result of an increase in IP-related revenues through increased sales of FLET'S Hikari, an increase in mobile handset sales revenues resulting from the introduction of new sales models, an increase in revenues through expansion of consolidated subsidiaries, and an increase in systems integration revenues through expanded outsourcing services. Consolidated operating expenses decreased to 2,221.5 billion yen due to factors such as a decrease in revenue-linked expenses in mobile communications. As a result, consolidated operating income was 372.1 billion yen, consolidated income before income taxes, minority interests and equity in earnings (losses) of affiliated companies was 387.9 billion yen, and consolidated net income was 175.5 billion yen.
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(2) Segment results Results by business segment are as follows. <1> Regional telecommunications business segment  Operating revenues in the first quarter of the fiscal year ending March 31, 2009 were 995.1 billion yen. Despite an increase in IP-related revenues attributable to the increase in FLET'S Hikari subscriptions, revenues decreased due to the migration from fixed-line telephones and leased lines to low-priced IP-based services. Operating expenses in the first quarter of the fiscal year ending March 31, 2009 were 983.9 billion yen due to factors such as a decrease in personnel costs. As a result, operating income in the first quarter of the fiscal year ending March 31, 2009 was 11.2 billion yen. Number of subscriptions 
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<2> Long-distance and international communications business segment  Operating revenues for the first quarter of the fiscal year ending March 31, 2009 were 311.5 billion yen, as conventional fixed voice related revenues decreased while increases were recorded in OCN, VPN-related services and other IP-related revenues as well as in revenues from corporate solutions. Operating expenses for the first quarter were 283.6 billion yen, as a result of decreases in telecommunication facility usage fees in conjunction with the decline in fixed voice related revenues. As a result, operating income for the first quarter of the fiscal year ending March 31, 2009 was 27.9 billion yen. |
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<3> Mobile communications segment  Operating revenues for the first quarter of the fiscal year ending March 31, 2009 were 1,170.2 billion yen. This was the result of a decrease in mobile voice related revenues from the expansion of new discount services, despite an increase in handset sale revenues in conjunction with the introduction of new sales models. Operating expenses for the quarter were 875.1 billion yen, due to factors such as the decrease in revenue-related expenses attributable to decrease in units of handsets sold. As a result, operating income for the first quarter of the fiscal year ending March 31, 2009 was 295.1 billion yen. Number of subscriptions 
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<4> Data communications segment  Operating revenues for the first quarter of the fiscal year ending March 31, 2009 were 241.8 billion yen as a result of increased revenues due to factors including the expansion of consolidated subsidiaries and expanded outsourcing services. Due to an increase in revenue-linked expenses, operating expenses for the quarter were 220.2 billion yen. As a result, operating income for the first quarter of the fiscal year ending March 31, 2009 was 21.7 billion yen. |
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<5> Other segments  In the other business segments, aggressive promotion of real estate, financing, construction and power, system development and advanced technology development businesses resulted in operating revenues for the first quarter of the fiscal year ending March 31, 2009 of 267.6 billion yen and operating income of 14.2 billion yen. |
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