FOR IMMEDIATE RELEASE
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NTT Announces First-Half Results for Fiscal Year |
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, 1998. Operating revenue was 3,029.5 billion yen, a 3.9 percent decrease from the same period of the previous fiscal year. Recurring profit was 123.1 billion yen, a 40.6 percent decrease, and net income was 63.0 billion yen, a 53.9 percent decrease. |
On a consolidated basis, the group posted operating revenue of 4,711.6 billion yen, up 1.6 percent, recurring profit was 404.5 billion yen, a 15.4 percent increase, and net income was 264.9 billion yen, up 48.6 percent. |
The Japanese economy in the reporting period remained stagnant due to weak consumer spending and remarkably lower capital investment by small and middle-size firms. |
In the telecommunications industry, a wide range of new services resulted from rapid progress achieved with digital technology. Full-scale competition in both the local and long-distance telecommunications markets enabled customers to select telecommunications operators strictly on the basis of services and fees. |
NTT improved the convenience of its services and strengthened its competitiveness. It inaugurated in December 1996 the Open Computer Network (OCN), which provides low-cost, 24-hour Internet connection. NTT added to this service, "Super OCN," a secure, high-quality service designed for high-traffic Internet users, such as universities and corporations. Competitiveness was improved by introducing more "Digital Access" low-priced, reduced-scope leased circuit services, such as the "Digital Access 1500" for communication within 30 kms and "Digital Reach" for communication exceeding 30 kms. NTT also stepped up corporate sales activities, mainly by establishing client-server systems, to capitalize on the increasing number of corporations that reviewed their telecommunications systems as part of general restructuring. |
Arcstar-brand global communications services, launched through NTT subsidiaries in September 1997, were provided in 12 countries and areas as of the end of this past September. They are being used by domestic and foreign corporate customers. To expand the functions of these services, NTT formed a strategic partnership by investing in Verio Inc., a U.S.-based Internet service provider. Starhub, a consortium formed by NTT, British Telecom and two local corporations, won licenses from the Singaporean government to provide public basic telecommunication services, both domestic and international, and public cellular mobile telephone services, which are expected to start in April 2000 in Singapore. In China, NTT established Beijing Telecom NTT Engineering Co., Ltd. with the Beijing Telecommunications Administration and began to provide system-integration services for customers mainly in the Beijing area. |
NTT further strengthened its operational flexibility in July by transferring its submarine cable engineering business to NTT World Engineering Marine (NTT-WE Marine), which was established in March 1998. |
The corporation actively opened up its network to other telecommunications carriers and responded quickly to requests for network interconnection, such as interconnection with local switches for long-distance telecommunications carriers, who previously could connect with tandem switches only. |
NTT also announced today the first-half business results of its major services. Steady sales of INS-Net services contributed to ordinary telephone subscriber lines decreasing to 59.46 million, a drop of 0.72 million from the end of March. Lines for "INS-Net 64" services climbed to 759 thousand up 27.2 percent from a year earlier. High-speed digital circuits grew to 195 thousand up 26 thousand from the end of March. |
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, 1998. The interim dividend is scheduled to be paid on December 11, 1998. |
NTT's non-consolidated operating revenue, recurring profit and net income for the current fiscal year ending March 31, 1999 are forecasted to be 6,192 billion yen, 259 billion yen and 434 billion yen, respectively. Also, NTT's consolidated operating revenue, recurring profit and net income for the same fiscal year are expected to be 9,602 billion yen, 616 billion yen and 624 billion yen, respectively. |
The annual cash dividend for the fiscal year ending March 31, 1999 is forecasted to be 10,000 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. |
 NTT NEWS RELEASE |