On May 9, 2025, NTT Corporation held an earnings briefing for the fiscal year 2024, revealing a mixed financial performance. The company reported an operating revenue of 13 trillion 704.7 billion yen, an increase of 330.2 billion yen (2.5%) compared to the previous year, marking a new record. However, operating profit fell by 273.3 billion yen (14.2%) to 1 trillion 649.6 billion yen, and profit attributable to owners of the parent company decreased by 279.5 billion yen (21.8%) to 1 trillion yen. This resulted in a situation where revenue increased, but profit decreased, a trend that raised eyebrows among analysts and investors alike.
Breaking down the performance by segments, the Integrated ICT business showed resilience despite a drop in mobile communication service revenues. NTT Docomo's Smart Life business, which focuses on financial and payment services, contributed positively with a year-on-year increase of 73.1 billion yen. However, investments aimed at enhancing NTT Docomo's customer base and network quality led to a decrease in profit by 123.9 billion yen.
The Regional Communications business also faced challenges, experiencing a decline in network income and a drop in revenue of 70.9 billion yen compared to the previous year. This was compounded by the impact of streamlining non-core businesses conducted in the prior year, resulting in a profit decrease of 142.2 billion yen. In contrast, the Global Solutions business thrived, benefiting from domestic digitalization demands and currency exchange effects, leading to a revenue increase of 271.3 billion yen and a profit increase of 14.3 billion yen.
In the other businesses, which include real estate and energy, NTT Urban Solutions expanded its data center engineering efforts, resulting in a revenue increase of 93.6 billion yen. However, profits decreased by 4 billion yen due to a reduction in profits from asset sales conducted in the previous year.
Looking ahead, President Akira Shimada expressed optimism for the fiscal year 2025, forecasting an operating revenue increase of 485.3 billion yen to reach 14 trillion 190 billion yen. He also projected an operating profit increase of 120.4 billion yen to 1 trillion 770 billion yen, along with a profit attributable to owners of the parent company expected to rise by 40 billion yen to 1 trillion 40 billion yen. Shimada emphasized that fiscal year 2025 would be a critical year for accelerating strategies aimed at achieving the medium-term targets set for 2027.
Meanwhile, on the same day, NTT Docomo also held its fiscal year 2024 results briefing. The company reported an operating revenue increase of 1.2% year-on-year to 6 trillion 213.1 billion yen, while its operating profit decreased by 10.8% to 120.5 billion yen. The consumer communications sector saw a significant profit decrease of 144.6 billion yen, primarily due to a reduction in communication service revenues.
However, the Smart Life and corporate sectors showed promising growth. The marketing solutions business, bolstered by a collaboration with Intage, grew to a revenue of 172.4 billion yen, with plans to reach 185 billion yen in fiscal year 2025. The number of partners in the ID-POS collaboration expanded to 70 companies, and the new 'Mainichi Receipt' service, launched in February 2025, has been instrumental in enhancing purchase data and analytical capabilities.
Docomo's President Yoshitaka Maeda highlighted that fiscal year 2025 will be a transformative year aimed at driving growth. He indicated that the consumer communications sector is expected to see a profit decrease of 51.5 billion yen, but this will be offset by growth in the Smart Life and corporate sectors. The company has set ambitious targets for operating revenue of 6 trillion 336 billion yen and operating profit of 96.6 billion yen.
In terms of customer engagement, the company reported that the number of 'd Card PLATINUM' members has exceeded 600,000, a significant increase from 347,000 at the end of January 2025, reflecting a growth of over 250,000 members in just three months. The average spending per PLATINUM member is 25% higher, contributing positively to transaction volume.
Additionally, the balance of MoneyKit's d Card has surged approximately fivefold from August 2024 to March 2025, indicating a strong uptake of financial services offered by Docomo.
As part of its strategy, Docomo is also focusing on enhancing its marketing solutions through partnerships and expanding its entertainment offerings. The company aims to monetize original content and develop fan engagement through various channels, including ticketing and community initiatives.
In the corporate sector, Docomo plans to target revenue of 2 trillion yen in fiscal year 2025, leveraging growth in IoT, AI, digital BPO, and regional small and medium-sized enterprise digital transformations.
On the network front, the company has increased its 5G base stations by 20% compared to March 2024, with improvements in average throughput in the Tokyo metropolitan area also reaching approximately 20%. This has reportedly reduced customer complaints on social media by 40%. The company aims to continue enhancing the quality of its network with further 5G expansions.
Despite the positive outlook, the decision regarding NTT Docomo's entry into banking services remains uncertain. President Akira Shimada previously indicated a desire to reach a conclusion by the next earnings announcement but stated that no decisions have been made as of now. Maeda reiterated that while nothing is finalized, the company is exploring all possibilities, recognizing the potential for business expansion through banking functionalities.
As NTT and NTT Docomo navigate through a challenging fiscal landscape, their strategic focus on growth and transformation will be critical in the coming years, reflecting the dynamic nature of the telecommunications and technology sectors.
