NTT Reports 15.5% Drop In Profit Amid Uncertain Outlook

Nippon Telegraph and Telephone (NTT) reported a significant decline in its financial performance for the fiscal year ending March 2025, with a 15.5% drop in consolidated ordinary profit, which fell to 1 billion yen. This announcement was made on May 8, 2025, after the close of the major market at 15:40. The company did not provide a business outlook for the fiscal year ending March 2026, excluding any dividend announcements.

The latest figures reveal that the consolidated ordinary profit for the January-March period, which constitutes the fourth quarter, decreased by 12.5% year-on-year to 300 million yen. Additionally, the sales operating profit margin saw a considerable decline, dropping from 16.3% in the same period of the previous year to 11.0%.

NTT's sales for the fiscal year ending March 2023 reached 6,074 million yen, with an operating profit of 740 million yen and an ordinary profit of 780 million yen. The net profit stood at 690 million yen, with a revised earnings per share of 4.2 yen and no dividend declared, as reported on May 10, 2023.

For the fiscal year ending March 2024, the company experienced a notable increase in sales, which amounted to 7,400 million yen. Operating profit rose to 1,139 million yen, while ordinary profit reached 1,183 million yen, culminating in a net profit of 1,365 million yen. The revised earnings per share for this period were reported at 8.3 yen, with no dividend issued, as announced on May 9, 2024.

However, the fiscal year ending March 2025 showed contrasting results. Sales were reported at 9,238 million yen, but the operating profit decreased to 962 million yen, and ordinary profit fell to 1,000 million yen. The net profit also dropped to 849 million yen, leading to a revised earnings per share of 5.1 yen, with no dividend declared, as announced on May 8, 2025.

When comparing these results to the previous year, sales increased by 24.8%, but the operating profit and ordinary profit both decreased by 15.5%. The net profit saw a more dramatic decline of 37.8%, and earnings per share decreased by 38.1%.

Looking at the quarterly performance, sales for the first half of the fiscal year from April to September 2024 were reported at 4,257 million yen, with an operating profit of 329 million yen and an ordinary profit of 325 million yen. The net profit for this period was 246 million yen, resulting in earnings per share of 1.5 yen, with no dividend declared, as reported on November 7, 2024.

For the fiscal year ending March 2025, the first quarter results showed sales of 2,563 million yen, with an operating profit of 283 million yen and an ordinary profit of 301 million yen. The net profit was reported at 293 million yen, with earnings per share of 1.8 yen and a sales operating profit margin of 11.0%, as announced on May 8, 2025.

In summary, NTT's recent financial disclosures highlight a challenging economic environment, marked by decreased profits and a significant drop in profit margins. The company has not provided a forecast for the upcoming fiscal year, leaving stakeholders uncertain about future performance.