For Immediate Release
November 22, 1996
NTT Announces First-Half Results for Fiscal Year Ending March 31, 1997
Nippon Telegraph and Telephone Corporation (NTT) announced today its non-consolidated financial results based on Japanese accounting principles for the period from April 1 to September 30, 1996. Operating revenue was 3,155.7 billion yen, a 4.2 percent increase from the same period last fiscal year. Recurring profit was 207.7 billion yen, a 63.9 percent increase, and net income was 110.2 billion yen, a 11.1 percent increase.
The Japanese economy in the reporting period grew at a slow rate due to such factors as sluggish personal consumption, although private-sector capital investment and housing construction showed signs of recovery.
The worldwide information communications industry saw continued globalization due to technological innovation and the internationalization of corporate activities, based on which telecommunications carriers around the world advanced overseas to compete, as well as to collaborate. At the same time, new information communications services involving broadcasting and computers were actively developed and introduced.
In Japan, the environment surrounding telecommunications carriers changed dramatically as a result of increasing competition in the telecommunications market due to the rapid penetration of cellular telephones and personal handy-phone system (PHS) services, as well as computer communications such as the Internet.
NTT drew closer to commercializing its "Open Computer Network (OCN)" services for computer communications. The development and commercialization of other new services also progressed through "Joint Utilization Tests of Multimedia Communications" conducted in cooperation with other companies and research organizations. In addition, NTT continued to install optical access networks needed for advanced communications infrastructure, capable of, for example, high-speed transmission of high-volume video data for multimedia. Furthermore, the company actively acquired equipment needed to respond to a rapid increase in the demand for digital network services, such as those for the INS-Net service.
NTT enhanced its services and strengthen its competitiveness. It collaborated with Microsoft Corporation to provide information communications systems combining LAN with INS-Net services for small and medium-size companies. Also, NTT launched "Voice Warp" service featuring enhanced call-forwarding, and "Super Telewise" service for discounts on cumulative phone charges of telephone lines in multiple locations, but owned by a single company.
Overseas, NTT continued the construction of telephone networks in Thailand, the Philippines and Indonesia. In addition, NTT was engaged in a project to construct telephone networks in India, in which the company was selected to take part in March, as well as the promotion of PHS services and the development of a basic plan for the construction of a multimedia city in Malaysia.
In launching a new nationwide operator service system in June, NTT raised the efficiency of its directory assistance service by closing or consolidating several directory assistance centers. In addition, the head office's internal structure was downsized and administrative departments were trimmed in July.
NTT actively opened its network to other carriers with a view to stimulating the market and promoting competition. The Interconnection Promotion Department was opened in May as a system for rapidly responding to a broad scope of requests from carriers for interconnection.
NTT also announced today the results of major services. The corporation added 540,000 ordinary subscriber lines, a 36.6 percent decrease from the same period last fiscal year, resulting in a total of 61.31 million
subscriber lines as of the end of September 1996. NTT sold 206,000 lines for INS-Net 64 service, a 192.7 percent increase over the same period last fiscal year.
The number of high-speed digital circuits increased by 23,000, marking a 122.2 percent increase over the previous fiscal year.
NTT also announced that an interim cash dividend of 2,500 yen per share will be paid to shareholders on record as of the close of September 30, 1996. The interim dividend is scheduled to be paid on December 13, 1996.
NTT's non-consolidated operating revenue, recurring profit and net income based on Japanese accounting principles for the current fiscal year ending March 31, 1997, are forecasted to be 6,347 billion yen, 349 billion yen and 205 billion yen, respectively. The annual cash dividend for the fiscal year ending March 31, 1997, is forecasted to be 5,000 yen per share, including the above mentioned interim dividend of 2,500 yen per share.
All financial information stated in this release was prepared on the basis of generally accepted accounting principles in Japan.
Attachment 1
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
NON-CONSOLIDATED BALANCE SHEET
(Based on Japanese Accounting Principles)
|
March 31, 1996 |
September 30, 1996 |
|
Millions of Yen |
Millions of Yen |
Millions of US$ |
| ASSETS |
| FIXED ASSETS |
9,729,099 |
9,676,108 |
87,172 |
| CURRENT ASSETS |
1,385,578 |
1,228,618 |
11,068 |
| TOTAL ASSETS |
11,114,677 |
10,904,726 |
98,240 |
| LIABILITIES |
| LONG-TERM LIABILITIES: |
| Bond and long-term debt |
2,785,164 |
2,628,381 |
23,679 |
| Severance payments |
2,045,947 |
2,103,508 |
18,950 |
| Others |
21,146 |
20,966 |
188 |
| Total long-term liabilities |
4,852,259 |
4,752,857 |
42,818 |
| CURRENT LIABILITIES: |
| Current portion of long-term debt and short-term borrowings |
581,182 |
541,656 |
4,879 |
| Accounts payable and accrued liabilities |
798,510 |
683,083 |
6,153 |
| Others |
478,246 |
452,359 |
4,075 |
| Total current liabilities |
1,857,940 |
1,677,099 |
15,109 |
| TOTAL LIABILITIES
| 6,710,199 |
6,429,957 |
57,927 |
| SHAREHOLDERS' EQUITY |
| Common stock |
795,600 |
795,600 |
7,167 |
| Legal capital reserve |
2,530,476 |
2,530,476 |
22,797 |
| Legal earned reserve |
83,529 |
87,525 |
788 |
| Special depreciation reserve |
34,282 |
53,191 |
479 |
| General reserves |
786,000 |
810,000 |
7,297 |
| Unappropriated retained earnings |
174,591 |
197,976 |
1,783 |
| TOTAL SHAREHOLDERS' EQUITY |
4,404,478 |
4,474,769 |
40,313 |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
11,114,677 |
10,904,726 |
98,240 |
- Note:
- Yen amounts have been translated, for convenience only, at ¥111= US$1.00,
the approximate exchange rate on September 30, 1996. Fractions are rounded down
|
Attachment 2
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
NON-CONSOLIDATED STATEMENTS OF INCOME
(Based on Japanese Accounting Principles)
|
Six Months Ended September 30 |
|
1995 |
1996 |
|
Millions of Yen |
Millions of Yen |
Millions of US$ |
| OPERATING REVENUES |
3,028,486 |
3,155,797 |
28,430 |
| OPERATING EXPENSES |
2,851,038 |
2,910,383 |
26,219 |
| OPERATING INCOME |
177,447 |
245,414 |
2,210 |
| NON-OPERATING REVENUES |
36,991 |
41,146 |
370 |
| NON-OPERATING EXPENSES |
87,663 |
78,815 |
710 |
| RECURRING PROFIT |
126,775 |
207,745 |
1,871 |
| EXTRAORDINARY INCOME |
47,465 |
------ |
------ |
| INCOME BEFORE TAXES |
174,241 |
207,745 |
1,871 |
| CORPORATION AND INHABITANT TAXES |
75,000 |
97,500 |
878 |
| NET INCOME |
99,241 |
110,245 |
993 |
- Note:
- Yen amounts have been translated, for convenience only, at ¥111= US$1.00,
the approximate exchange rate on September 30, 1996. Fractions are rounded down.
|
Attachment 3
Business Results (Non-consolidated Operating Revenues)
(Unit: Million Yen)
| Service |
Six Months Ended on
Sep. 30, 1995 |
Six Months Ended on
Sep. 30, 1996 |
Increase
(Decrease) |
Fiscal Year Ended on
Mar. 31, 1996 |
| Telephone Services |
2,362,090 |
2,425,530 |
63,439 |
4,816,718 |
| Telex Services |
1,061 |
939 |
(121) |
1,995 |
| Telegram Services |
43,981 |
45,444 |
1,463 |
94,750 |
| Leased Circuit Services |
238,696 |
247,320 |
8,623 |
467,648 |
| Digital Data Exchange Services |
21,367 |
21,581 |
213 |
42,481 |
| Other Services |
223,624 |
253,230 |
29,605 |
473,825 |
Telecommunications
Total Revenues |
2,890,823 |
2,994,047 |
103,224 |
5,897,419 |
Related Business
Total Revenues |
137,662 |
161,750 |
24,087 |
337,332 |
| Total Operating |
3,028,486 |
3,155,797 |
127,311 |
6,234,751 |
Notes: Fractions are rounded down.
|
