NTT (9432) Q2 2025 earnings summary

Executive summary

• Operating revenues for the six months ended September 30, 2024, reached a record ¥6,590.6B, up 3.6% year-over-year, with a positive currency impact of about JPY 100 billion.

• Operating profit declined 3.2% year-over-year to ¥920.3B, but exceeded internal plans for the quarter.

• Profit attributable to NTT dropped 17.3% year-over-year to ¥554.8B, mainly due to lower operating profit and the absence of prior-year stock sale proceeds.

• EBITDA increased by JPY 12 billion year-over-year to JPY 1.69 trillion, driven by growth in data center and other high-growth areas.

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

Financial highlights

• Operating revenues increased by ¥226.1B year-over-year, driven by growth in system integration services and telecom equipment sales.

• Operating profit fell to ¥120.3B for Q2 and ¥920.3B for H1, down year-over-year.

• Net profit dropped to ¥554.8B, a decrease of ¥116.1B year-over-year.

• EBITDA rose to ¥1.69 trillion, up ¥12B year-over-year.

• Total assets as of September 30, 2024, were ¥29,604.2B, with equity at ¥11,055.4B.

Outlook and guidance

• Annual consolidated profit plan remains unchanged, with a focus on reinforcing the customer base, improving network quality, and expanding enterprise business.

• Interim dividend payment date moved earlier to November 29, 2024, following legal amendments.

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

• Full-year operating revenues are forecast at ¥13,460,000 million, up 0.6% from the previous year.

• Profit attributable to NTT is projected to decline 14.0% to ¥1,100,000 million, with a dividend forecast of ¥5.20 per share.