NTT (9432) Q3 2025 earnings summary

Executive summary

• Operating revenue for the nine months ended December 31, 2024, reached a record high of ¥10,049.7 billion, up 3.4% year-over-year, driven by growth in domestic/global operations and Smart Life business, with significant FX impact.

• Operating profit declined 5.9% year-over-year to ¥1,399.2 billion, and net profit attributable to NTT dropped 15.9% to ¥850.7 billion, mainly due to lower communication service revenues and higher marketing costs.

• EBITDA was ¥2,552.5 billion, down 0.7% year-over-year, reflecting the drop in operating profit.

• Comprehensive income attributable to NTT decreased to ¥904.1 billion from ¥1,301.6 billion year-over-year.

Financial highlights

• Smart Life, finance/payment, and system integration services showed strong revenue and profit growth, offsetting some declines in consumer communications and voice revenues.

• Operating expenses rose by ¥419.8 billion, mainly due to higher personnel and purchase costs.

• Cash flows from operating activities were ¥1,090.3 billion, with free cash flow at ¥327.1 billion for the period.

• Total assets increased to ¥30,603.4 billion, and equity rose to ¥11,280.3 billion as of December 31, 2024.

• Retained earnings increased by ¥440.7 billion to ¥9,518.8 billion.

Outlook and guidance

• Achieving the annual profit plan is challenging, but efforts are ongoing to meet targets through cost reduction and customer base reinforcement.

• Full-year operating revenues are forecast at ¥13,460.0 billion, up 0.6% from the previous year, with operating profit expected to decline 5.9% and profit attributable to NTT forecast to fall 14.0%.

• FY2024 capital investment is projected at ¥2,150.0 billion, with continued focus on ICT, regional, and global solutions.

• Dividend per share for FY2024E is expected to be maintained, with a payout ratio around 33.8%, and share buybacks up to ¥200.0 billion are planned through March 2025.