NTT (9432) Q2 2025 earnings summary

Executive summary

• Operating revenues for the six months ended September 30, 2024, reached a record ¥6,590.6 billion, up 3.6% year-over-year, but operating profit declined 3.2% to ¥920.3 billion and net profit dropped 17.3% to ¥554.8 billion.

• EBITDA increased by 0.7% to ¥1,685.6 billion, driven by growth in data center and Smart Life businesses.

• Strategic initiatives included investments in autonomous driving, AI collaboration, and the world's first international IOWN APN connection.

• Performance exceeded internal plans, with positive net additions in fiber services and improvement in mobile number portability.

• Basic earnings per share for the period were ¥6.60, reflecting a 25-for-1 stock split adjustment.

Financial highlights

• Operating revenues increased by ¥226.1 billion year-over-year, mainly from system integration services and telecom equipment sales.

• Operating expenses rose ¥256.7 billion, with higher personnel and purchase costs.

• Cash flows from operating activities were ¥928.5 billion, down ¥97.3 billion from the prior year; free cash flow was ¥63.6 billion.

• Total assets as of September 30, 2024, were ¥29,604.2 billion, with equity at ¥11,055.4 billion and interest-bearing debt at ¥9,591.0 billion.

• Net cash provided by operating activities increased to ¥1,121,366 million, while net cash used in investing activities rose to ¥1,076,720 million.

Outlook and guidance

• Full-year operating revenues are forecast at ¥13,460,000 million, up 0.6% from the previous year, with profit attributable to NTT projected to decline 14.0% to ¥1,100,000 million.

• Dividend forecast for the year ending March 31, 2025, is ¥5.20 per share, with interim dividend payment moved up to November 29, 2024.

• Board authorized up to ¥200.0 billion in share buybacks for FY2024, with ¥88.3 billion completed by end of October 2024.

• Broadband and mobile subscriptions projected to continue growing, with fixed-line broadband expected to reach 23.754 million and mobile subscriptions 91.494 million by March 2025.

• Management emphasizes balancing marketing and profit protection while maintaining full-year plans.