 |
1. Qualitative Information
(1) Qualitative Information Relating to Consolidated Business Results |
<1> Consolidated results
Three-Month Period Ended December 31, 2010 (October 1, 2010 - December 31, 2010)
Nine-Month Period Ended December 31, 2010 (April 1, 2010 - December 31, 2010)
During the three-month period ended December 31, 2010, NTT Group directed its efforts towards an expansion of broadband and ubiquitous services pursuant to its “Road to Service Creation Business Group” Medium-Term Management Strategy, adopted in May 2008.
Fixed-line communications field
NTT Group worked to expand the coverage area of FLET’S Hikari and continued to further strengthen and expand the distribution of FLET’S Hikari. NTT Group began providing “FLET’S Market” and “Hikari i-Frame”, services using FLET’S Hikari that enable convenient and easy access to up-to-the-minute information useful for daily life, such as electronic flyers and recipes, in addition to news, weather and other useful information. Besides, NTT Group worked to increase the convenience of its FLET’S Hikari services by expanding “Hikari Portable”, a rental service for mobile Wi-Fi routers that enables various Wi-Fi terminals*1 to be used both within and outside the home, into western Japan. As a result of these efforts, the number of FLET’S Hikari subscriptions reached 14.72 million.
Mobile communications field
NTT Group received the No.1 rating by J.D. Power Asia Pacific in its customer satisfaction study*2. NTT Group also released 18 handset models, including smartphones such as “GALAXY S”, and provided handsets and services that respond to the diverse needs of its customers. As a result, the total number of smartphones sold in the nine-months ended December 31, 2010 has exceeded one million. In addition, on December 24, 2010, NTT Group launched the new “Xi” service using LTE (Long Term Evolution) system, a new mobile phone communication standard featuring high-speed, large-capacity and low-latency transmission capabilities, in Tokyo, Osaka and Nagoya. As a result of these efforts, the number of mobile phone subscriptions reached 57.21 million.
Solutions field
NTT Group worked to provide high value-added solutions tailored to customer industries and business categories by expanding its cloud services, BizXaaS and BizCITY, as well as structuring and providing systems to customers that utilize cloud services. In addition, in order to achieve quick, low-cost system installation, NTT Group launched “Lindacloud”, a vertically-integrated server that has software specific to its intended purposes pre-installed into a power-saving, low-heat emitting, low-noise and environmentally-friendly hardware.
Upper-layer services
NTT Group worked to enhance its video services, including the implementation of a startover function, which allows a viewer to rewind a Hikari TV program in progress and view the program from the beginning. NTT Group also updated the e-Learning English conversation service, “Virtual English School”, and otherwise endeavored to enhance the e-Learning services that take advantage of the strengths of the Internet. In addition, NTT Group launched “NTT Net Settlement”, a settlement platform for e-commerce sites that allows the use of “docomo Mobile Payment” and other types of settlement services provided by NTT Group and others.
Global businesses
By acquiring one-hundred percent ownership of Dimension Data Holdings plc, which has offices in 49 countries around the world, and of Keane International, Inc., which has offices in 11 countries centered on North America, NTT Group has constructed a framework which enables it to provide global one-stop ICT services in Australia, South America, the Middle East and Africa, in addition to Asia, Europe and the United States. Moreover, NTT Group expanded its coverage area for its global VPN service, “Arcstar Global IP-VPN Service”, and also launched an IP service for global internal dialing, a seamless global VoIP (Voice over Internet Protocol) service that utilizes the “Arcstar Global IP-VPN Service”, making NTT Group Japan’s first telecommunications carrier to offer such service.
As a result of these efforts, NTT Group’s consolidated operating revenues for the three-month period ended December 31, 2010 were ¥2,543.6 billion (an increase of 0.6% from the same period of the previous fiscal year), consolidated operating expenses were ¥2,205.3 billion (a decrease of 0.9% from the same period of the previous fiscal year), consolidated operating income was ¥338.4 billion (an increase of 12.3% from the same period of the previous fiscal year), consolidated net income before income taxes was ¥321.2 billion (an increase of 7.7% from the same period of the previous fiscal year), and net income attributable to NTT was ¥143.1 billion (an increase of 4.6% from the same period of the previous fiscal year).
For the nine-month period ended December 31, 2010, NTT Group’s consolidated operating revenues were ¥7,542.7 billion (an increase of 0.2% from the same period of the previous fiscal year). Consolidated operating expenses were ¥6,477.4 billion (a decrease of 1.5% from the same period of the previous fiscal year). As a result, consolidated operating income was ¥1,065.3 billion (an increase of 12.4% from the same period of the previous fiscal year) while consolidated net income before income taxes was ¥1,031.5 billion (an increase of 9.5% from the same period of the previous fiscal year). Consolidated net income attributable to NTT was ¥458.3 billion (an increase of 9.4% from the same period of the previous fiscal year) for the nine-month period ended December 31, 2010.
| Note: |
NTT Group’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. |
|
(1) |
Trademark for certification of connectivity among wireless LAN (Local Area Network) devices. |
|
(2) |
J.D. Power Asia Pacific 2010 Japan Mobile Phone Service Customer Satisfaction Index StudySM. Study results were based on responses obtained from 7,500 mobile phone users residing in Japan during the period between late July and late August 2010. www.jdpower.co.jp/. |
|
Results by business segment are as follows.
- Regional telecommunications business segment
Three-Month Period Ended December 31, 2010 (October 1, 2010 - December 31, 2010)
Nine-Month Period Ended December 31, 2010 (April 1, 2010 - December 31, 2010)
NTT Group’s consolidated operating revenues for the three-month period ended December 31, 2010 were ¥993.7 billion (an increase of 1.8% from the same period of the previous fiscal year). Revenues rose primarily due to an increase in solution services revenues and IP-related revenues attributable to the increase in “FLET’S Hikari” subscriptions, partially offset by a decrease in fixed voice related revenues owing to a decline in fixed-line telephone subscriptions. Consolidated operating expenses were ¥947.9 billion (an increase of 0.3% from the same period of the previous fiscal year) due to, among other factors, an increase in operating expenses, including expenses coupled with an increase in solution services revenues, despite a decrease in personnel expenses resulting from a decline in the number of employees and a decrease in depreciation and amortization. As a result, consolidated operating income in the three-month period ended December 31, 2010 was ¥45.8 billion (an increase of 47.6% from the same period of the previous fiscal year).
For the nine-month period ended December 31, 2010, consolidated operating revenues were ¥2,929.9 billion (an increase of 0.6% from the same period of the previous fiscal year) and consolidated operating expenses were ¥2,798.3 billion (a decrease of 1.2% from the same period of the previous fiscal year). As a result, consolidated operating income for the nine-month period ended December 31, 2010 was ¥131.6 billion (an increase of 61.0% from the same period of the previous fiscal year).
Number of subscriptions
| Notes |
: |
(1) |
FLET’S Hikari includes B FLET’S and FLET’S Hikari Next provided by NTT East and B FLET’S, FLET’S Hikari Premium, FLET’S Hikari Mytown, and FLET’S Hikari Next provided by NTT West. |
| (2) |
The figures for Hikari Denwa indicate number of channels (in thousands). |
|
- Long-distance and international communications business segment
Three-Month Period Ended December 31, 2010 (October 1, 2010 - December 31, 2010)
Nine-Month Period Ended December 31, 2010 (April 1, 2010 - December 31, 2010)
Consolidated operating revenues for the three-month period ended December 31, 2010 were ¥ 311.9 billion (an increase of 1.5% from the same period of the previous fiscal year). This was mainly due to an increase in revenues from corporate solution businesses and from the increase in the number of consolidated subsidiaries, despite a decline in fixed voice related revenues and IP-related revenues. Consolidated operating expenses for the same period increased to ¥287.8 billion (an increase of 1.9% from the same period of the previous fiscal year) due in large part to an increase in personnel expenses and other operating expenses resulting from the increase in the number of consolidated subsidiaries. As a result, consolidated operating income for the three-month period ended December 31, 2010 was ¥24.1 billion (a decrease of 3.5% from the same period of the previous fiscal year).
For the nine-month period ended December 31, 2010, consolidated operating revenues were ¥924.5 billion (an increase of 0.1% from the same period of the previous fiscal year) and consolidated operating expenses were ¥858.4 billion (an increase of 1.3% from the same period of the previous fiscal year). As a result, consolidated operating income for the nine-month period ended December 31, 2010 was ¥66.1 billion (a decrease of 13.3% from the same period of the previous fiscal year). |
- Mobile communications business segment
Three-Month Period Ended December 31, 2010 (October 1, 2010 - December 31, 2010)
Nine-Month Period Ended December 31, 2010 (April 1, 2010 - December 31, 2010)
Consolidated operating revenues for the three-month period ended December 31, 2010 decreased to ¥1,071.0 billion (a decrease of 2.3% from the same period of the previous fiscal year) mainly due to a decrease in mobile voice related revenues caused by increased market penetration of the “Value Plan,” and a decrease in handset sales revenues resulting from a fall in wholesale unit prices, despite an increase in packet communications revenues. On the other hand, consolidated operating expenses decreased to ¥845.4 billion (a decrease of 4.0% from the same period of the previous fiscal year) as a result of a decrease in revenue-driven expenses, network-related expenses and others. As a result, consolidated operating income for the three-month period ended December 31, 2010 was ¥225.6 billion (an increase of 4.4% from the same period of the previous fiscal year).
For the nine-month period ended December 31 2010, consolidated operating revenues were ¥3,209.1 billion (a decrease of 1.0% from the same period of the previous fiscal year) and consolidated operating expenses were ¥2,455.0 billion (a decrease of 3.5% from the previous fiscal year). As a result, consolidated operating income for the nine-month period ended December 31, 2010 was ¥754.2 billion (an increase of 8.0% from the same period of the previous fiscal year).
Number of subscriptions
| Notes |
: |
(1) |
The numbers for Mobile phone services subscriptions, FOMA services subscriptions, mova services subscriptions and Xi services subscriptions include communications module service subscriptions. |
| (2) |
Effective March 3, 2008, FOMA services subscriptions became mandatory for subscriptions to “2in1” services. Such FOMA services subscriptions to “2in1” services are included in the above numbers of Mobile phone services subscriptions and FOMA services subscriptions. |
| (3) |
The number of subscriptions for i-mode services represents the combined total of FOMA and mova services subscriptions. |
|
- Data communications business segment
Three-Month Period Ended December 31, 2010 (October 1, 2010 - December 31, 2010)
Nine-Month Period Ended December 31, 2010 (April 1, 2010 - December 31, 2010)
Consolidated operating revenues for the three-month period ended December 31, 2010 were ¥280.8 billion (an increase of 6.4% from the same period of the previous fiscal year) owing to the impact of a large-scale business transaction completed during the quarter and the increase in the number of consolidated subsidiaries. On the other hand, consolidated operating expenses for the three-month period ended December 31, 2010 were ¥259.2 billion (an increase of 4.6% from the same period of the previous fiscal year) due to an increase in expenses resulting from the increase in the number of consolidated subsidiaries and other factors. As a result, consolidated operating income for the three-month period ended December 31, 2010 was ¥21.6 billion (an increase of 34.0% from the same period of the previous fiscal year).
For the nine-month period ended December 31, 2010, consolidated operating revenues were ¥816.6 billion (an increase of 2.3% from the same period of the previous fiscal year) and consolidated operating expenses were ¥768.4 billion (an increase of 3.1% from the same period of the previous fiscal year). As a result, consolidated operating income for the nine-month period ended December 31, 2010 was ¥48.2 billion (a decrease of 9.1% from the same period of the previous fiscal year).
|
- Other segments
Three-Month Period Ended December 31, 2010 (October 1, 2010 - December 31, 2010)
Nine-Month Period Ended December 31, 2010 (April 1, 2010 - December 31, 2010)
Despite a decrease in revenues from the real estate business, consolidated operating revenues for the three-month period ended December 31, 2010 were ¥268.9 billion (an increase of 2.0% from the same period of the previous fiscal year) due to an increase in revenues from the construction and power business and the system development business. Consolidated operating expenses were ¥253.9 billion (a decrease of 1.2% from the same period of the previous fiscal year) due to lower loan loss expenses in the finance business. As a result, consolidated operating income for the three-month period ended December 31, 2010 was ¥15.0 billion (an increase of 124.5% from the same period of the previous fiscal year).
For the nine-month period ended December 31, 2010, consolidated operating revenues were ¥782.2 billion (a decrease of 0.9% from the same period of the previous fiscal year) and consolidated operating expenses were ¥741.1 billion (a decrease of 4.4% from the same period of the previous fiscal year). As a result, consolidated operating income for the nine-month period ended December 31, 2010 was ¥41.1 billion (an increase of 203.5% from the same period of the previous fiscal year). |
|
 |
Copyright (c) 2011 Nippon telegraph and telephone corporation |
|