For Immediate Release
November 21, 1997
NTT Announces First-Half Results for Fiscal Year Ending March 31, 1998
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, 1997. Operating revenue was 3,153.2 billion yen, a 0.1 percent decrease from the same period last fiscal year. Recurring profit was 207.2 billion yen, a 0.2 percent decrease, and net income was 136.7 billion yen, a 24.1 percent increase.The Japanese economy in the reporting period grew at a slow rate due to such factors as sluggish personal consumption and housing construction following a rise in the consumption tax rate, although equipment investment was on the recovery.
The worldwide communications industry saw growing demand among multinational corporations in need of international telecommunication network services amid the continued globalization of companies and society. At the same time, internet-based electronic commerce continued to grow due to rapid progress in multimedia technologies, which further intensified connection among telecommunication carriers worldwide.
NTT added "OCN Standard" and "OCN Enterprise" to its menu of "Open Computer Network (OCN)" services, which were inaugurated last December to greatly expand the service area for computer communication in Japan. NTT also improved internet access by raising the capacity of overseas access lines. Meanwhile, NTT began to provide "INS-Net 64 Light" service to penetrate as part of efforts to expand INS-Net services. In addition, NTT digitized optical access networks for advanced communications infrastructure needed to further new multimedia-used businesses. Furthermore, the company started to provide services focusing on client-server systems, such as ATM switches and LANs. In May, NTT initiated an Internet-based telegraph service, "D-MAIL."
NTT established NTT Worldwide Telecommunications Corporation, a wholly owned Type II international telecommunications company in Tokyo in July, following enactment in June of a revised NTT Law, which permits NTT, through subsidiary companies, to offer international telecommunications services. On September 1, the new company started, together with other NTT subsidiaries and associates, to provide multinational corporations with global end-to-end services that initially connected the U.S., the U.K., France, Hong Kong, Singapore and the Philippines, and will expand later. In September, NTT applied with the Minister of Posts and Telecommunications for approval to establish NTT Worldwide Network Corporation, a wholly owned Type I international telecommunications company.
Regarding overseas carrier business, NTT acquired a stake in Sri Lanka Telecom in August. In addition, NTT signed an agreement with Teligent, a fixed wireless local access carrier in the U.S., in September. In the multimedia field, NTT formed Asia Multimedia Forum (AMF) with other telecommunication companies in the Asia Pacific in June. In August, NTT also invested in Asia Internet Holding Co., Ltd. (AIH), an international Internet-connection company.
In April, meanwhile, NTT established NTT Communicationware Corporation (NTT Comware), a wholly owned subsidiary that provides software engineering services for networks and computer systems. In September, NTT Comware took over NTT's software-related business to develop operation systems.
NTT actively opened its networks to other carriers with a view to stimulating the market and promoting competition. As for the opening of networks, known as the "Opening of the Local Switches to Advanced Telecom-Service Providers" and "Connecting Type II Telecommunication Carriers to NTT Toll Switches," were announced respectively in July and September to rapidly respond to a broad scope of requests from carriers for interconnection.
NTT also announced today the results of major services. Due to rapid increases of cellular and Personal Handphone System (PHS) phones in addition to users shifting to INS Net services, NTT's ordinary telephone subscriber lines decreased to 61.02 million, a drop of 200,000 from the previous fiscal year. NTT sold 597,000 lines for INS-Net 64 services, a 189.4 percent increase over the same period last fiscal year.
The number of high-speed digital circuits increased by 33,000, a 45.1% increase over the same period last 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, 1997. The interim dividend is scheduled to be paid on December 12, 1997.
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 6,423 billion yen, 387 billion yen and 260 billion yen, respectively. The annual cash dividend for the fiscal year ending March 31, 1998 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.
