NIPPON TELEGRAPH AND TELEPHONE CORPORATION Financial Results for the Fiscal Year Ended March 31, 2024 (25th Term)
May 10, 2024
CopyrightCopyright20242024NTTTTWESTESTCORPORATIONC RP RATI
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This document is a translation of the Japanese original. The Japanese original is authoritative.
The forward-looking statements and projected figures concerning the future performance of NTT West and its subsidiaries and affiliates contained or referred to herein are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of NTT West in light of information currently available to it regarding NTT West and its subsidiaries and affiliates, the economy and telecommunications industry in Japan and overseas, and other factors. These projections and estimates may be affected by the future business operations of NTT West and its subsidiaries and affiliates, the state of the economy in Japan and abroad, possible fluctuations in the securities markets, the pricing of services, the effects of competition, the performance of new products, services and new businesses, changes to laws and regulations affecting the telecommunications industry in Japan and elsewhere, and other changes in circumstances that could cause actual results to differ materially from the forecasts contained or referred to herein.
- "E" in this material represents that the figure is a plan or projection for operation.
- "FY" in this material indicates the fiscal year ending March 31 of the succeeding year.
Copyright 2024 NTT WEST CORPORATION
FY2023 Financial Results and FY2024 Financial Results Forecast
- In FY2023, operating revenues were ¥1,497.0 billion and operating profit was ¥138.9 billion, leading to decreased revenues and increased profits
- In FY2024, operating revenues are expected to be ¥1,445.0 billion and operating profit is expected to be ¥80.0 billion, leading to
decreased revenues and decreased profit
IFRS | FY2022 | FY2023 | FY2024 | |||||||||||||||||||||||||||||||||||||||||||||||
Year-over- | Year-over- | |||||||||||||||||||||||||||||||||||||||||||||||||
(Consolidated) | Results | Results | Forecast | |||||||||||||||||||||||||||||||||||||||||||||||
year | year | |||||||||||||||||||||||||||||||||||||||||||||||||
Operating | 1,501.6 | 1,497.0 | (4.6) | 1,445.0 | (52.0) | |||||||||||||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Profit | 134.9 | 138.9 | +4.0 | 80.0 | (58.9) | |||||||||||||||||||||||||||||||||||||||||||||
Profit* | 93.2 | 98.8 | +5.6 | 54.0 | (44.8) | |||||||||||||||||||||||||||||||||||||||||||||
EBITDA | 335.0 | 328.8 | (6.2) | 279.0 | (49.8) | |||||||||||||||||||||||||||||||||||||||||||||
Capital Investment | 249.2 | 237.2 | (12.1) | 237.0 | (0.2) | |||||||||||||||||||||||||||||||||||||||||||||
Net Increase (Decrease) | +140,000 | +40,000 | (10,000) | +50,000 | +10,000 | |||||||||||||||||||||||||||||||||||||||||||||
in Hikari Subscriptions | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Number of Subscriptions) | (10.25 million) | (10.29 million) | (10.34 million) | |||||||||||||||||||||||||||||||||||||||||||||||
CORPORATION | ||||||||||||||||||||||||||||||||||||||||||||||||||
Copyright 2024 NTT WEST | * | Represents | profit | attributable | to NTT | West (after | deducting | income | attributable | to | non | -controlling interests). | ||||||||||||||||||||||||||||||||||||||
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Status and Forecast of Operating Profit | 4 |
FY2023 |
Although voice revenues decreased due to receded demand for remote work, NTT West was able to ensure a year-over-
year increase in profits by expanding its growth businesses, implementing cost improvements and through temporary factors, such as the systematic sale of non-core assets to reduce future costs associated with asset holding
FY2024
NTT West forecasts an operating profit of ¥80.0 billion, which represents a year-over-year decrease in profits, as a result of reactions to temporary factors and advance measures for future sustainable growth, among other factors, partially
offset by the continued expansion of growth businesses and cost improvements
Fixed voice- | (Billions of yen) | ||||||||
Temporary | 138.9 | Reaction to | |||||||
Voice | related | ||||||||
factors | revenues | Management | FY2023 | ||||||
134.9 | revenue | temporary | |||||||
decline | +23.0 | (26.0) | reforms | factors | FY2024 | ||||
Management | |||||||||
+14.0 | (23.0) | advance | |||||||
(30.0) | reforms | ||||||||
measures* | |||||||||
+11.0 | (24.0) | ||||||||
80.0 | |||||||||
FY2022 | FY2023 | FY | 2024 | (E) |
Copyright 2024 NTT WEST CORPORATION | ||||
* Includes the impact of a full-scale recovery from the earthquake and of telecommunications carrier migration.. | ||||
Initiatives for Sustainable Business Growth | 5 | |||
Operating Profit Forecast | Specific Initiatives | |||
Shifting towards increasing | １ | Growing and expanding Hikari services | ||
profitability, with FY2024 as a | ||||
baseline | ２ | Steadily migrating from legacy and other | ||
138.9 | (Billions of yen) | |||
services | ||||
Temporary | ||||
factors | ３ | Expanding social infrastructure businesses in | ||
Temporary | the public sector and elsewhere | |||
factors | ||||
80.0 | 4 | Further expanding growth businesses |
5 | Improving CX and strengthening cost | |||||||||||||||||||||||||||||||||||
2023 | 2024(E) | 2027 | ||||||||||||||||||||||||||||||||||
competitiveness | ||||||||||||||||||||||||||||||||||||
Copyright 2024 NTT WEST CORPORATION
1. Growing and Expanding Hikari Services | 6 |
- Maintaining net increases in Hikari services by expanding the Hikari service area, among other measures
- For the Hikari Cross area, increasing market share and improving ARPU by thoroughly promoting a "Cross-first" approach
FY2022 | FY2023 | FY2024 | FY2025 and After | |||
Expanding to | ~2,610 | + ~10 | ~2,620 | ＋~50 buildings | ~2,670 | 2,700 |
Over | ||||||
Un-Serviced | buildings | buildings | buildings | buildings | buildings | |
Areas* | ||||||
Expanding | Area expansion focusing | ・Sept. 2024: Further area expansions in Kansai and Tokai regions | Further area | |||
on urban centers in the | expansions from and | |||||
the Hikari | ・Oct. 2024: Expand area to cover Chugoku, Shikoku and Kyushu regions | |||||
Kansai and Tokai regions | after FY2025 under | |||||
Cross Area | ・Jan. 2025: Further expand area across western Japan | |||||
discussion | ||||||
Household | Number | Over | ~40% | ~1.5x | ~60% | Further increase the Hikari |
Rate | % | ~4x | Cross household coverage | |||
Coverage | ||||||
rate | ||||||
Number of | ~10,000 | 50,000 | Over | Over | ||
Hikari | ~5x | Further increase the number | ||||
Cross | contracts | contracts | ~2x | 100,000 | of Hikari Cross openings | |
Openings | contracts | |||||
Number of | 10.25 | +50,000 | 10.30 | +50,000 | 10.35 | Maintain net increases |
million | million | million | ||||
Optical Lines | ||||||
contracts | contracts | contracts | ||||
Copyright 2024 NTT WEST CORPORATION | ※竣工ベース |
2-(1). Steadily Migrating from Legacy and Other Services | 7 |
- Maximizing the retention of our customer base for legacy and other services (approx. ¥300.0 billion)
Legacy and Other Services | Alternative Services | |
・Telephone Subscriptions | ・Hikari Services (FLET's Hikari Cross/Next etc.) | |
・INS-Net | ・Hikari Denwa/Hikari Denwa Next | |
・FLET's ISDN | ・Optical Line Phones | |
・FLET's ADSL | Maximize | ・Wireless Landline Phones |
・STM (Dedicated Lines) | Migration | ・Wireless Services (including Local |
・Business Ether Wide | 5G) | |
・VPN Services | ||
・ Interconnected WAN | ||
・All-Photonics Network and others | ||
Copyright 2024 NTT WEST CORPORATION |
2-(2). Metal Migration Initiatives | 8 |
- We are utilizing wireless landline telephone services, which were launched in April, and also transitioning from metal services and creating and removing zero-capacity (unused) metal equipment
(Removals completed in FY2023: 500 km of underground cables) | ||||
Transitioning From Metal Services | Creating and Removing Zero-Capacity (Unused) Metal | |||
Equipment | ||||
Started transitions of subscribed phone users in remote islands and | Proceeding with cable switching and integration of thick | |||
rural areas where costs for metal cable maintenance are high | bundles of underground cables, thereby creating zero- | |||
and for customers whose metal cables need to be replaced | capacity (unused) cables | |||
Utilizing wireless landline telephones in addition to optical line | Implementing cable removals with funds from sales of cables | |||
telephones | ||||
Wireless Landline Telephone (launched April 1, 2024) | ||||
Telephone | Sim Card | |||
Terminal Adapter | NTT East Network | Telephone | ||
Mobile Phone | NTT West Network | |||
Network |
Copyright 2024 NTT WEST CORPORATION
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3. Expanding Social Infrastructure Businesses in the Public Sector and Elsewhere
Taking advantage of opportunities such as the lift of core local government processes to the government | |
cloud, and investing resources and products into the social infrastructure business field | |
System Integration/SaaS Revenues | Specific Initiatives |
Shifting operating resources (800 people) to social infrastructure | |||||||
¥125.0 billion | businesses (local governments, education, medical, environmental, etc.) | ||||||
| Increasing the number of specialists in the cloud and security fields | ||||||
(Forecast) | |||||||
(Currently: approx. 3,000 people → FY2027: approx. 5,000 people) | |||||||
| Enhancing managed services | ||||||
¥118.0 billion | (Launched the "Government Cloud Connection Support Service" on April 17) | ||||||
From LAN/WAN to cloud/AI, providing total support to solve customer | |||||||
problems, starting from the consulting stage | |||||||
¥112.0 billion | Region- | Vertically Integrated | |||||
Based | Managed Support | ||||||
Outsourcing Business | |||||||
Consulting | |||||||
Vertical Integration | BPO | ||||||
Cloud/AI and others | ＋ ManagedServices | ||||||
LAN/WAN and others | |||||||
2022 | 2023 | 2024 | 2025-27 | ・・ | Devices/Systems and | ||
・ | |||||||
others | |||||||
Copyright 2024 NTT WEST CORPORATION |
4. Further Expanding Growth Businesses (Solmare Expansion) | 10 |
- One of the largest e-book stores in Japan (with more than 35 million monthly users and over 1.34 million books)
- Strengthening comprehensive efforts, from original comic production to licensing development, and expanding business into global markets
Global Expansion
Comic Production | Product Sales | Licensing Development |
Strengthening |
Comprehensive Implementation
Increase U.S. sales | |
Publications Anime/Movies | approx. 3x |
compared to the previous year |
Expanding Original Works | |
1,917 works | Drama Merchandise |
（112% more compared to
the previous year）
Copyright 2024 NTT WEST CORPORATION
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NTT - Nippon Telegraph & Telephone Corporation published this content on 10 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 May 2024 04:28:07 UTC.
