NTT, Inc.

NTT said first-quarter operating revenue reached JPY 3,617.7 billion, up JPY 355.7 billion year on year, with a positive foreign-exchange impact of JPY 75 billion. EBITDA increased JPY 34.8 billion to JPY 836.2 billion, operating profit rose JPY 20 billion to JPY 425.1 billion, and net profit was JPY 274.8 billion, up JPY 15.1 billion. Management said growth came from DATA Group overseas, domestic business expansion, and Smart Life, despite costs for DOCOMO customer-base enhancement and network quality improvement. For guidance, management reiterated commitment to the full-year plan, focusing on expanding enterprise business at home and abroad and growing Smart Life; no specific next-quarter or full-year numeric guidance was provided on the call.

Shimada’s tone was upbeat but measured. He emphasized that revenue and profit grew across all segments, that mobile service revenue declines have slowed, and that DOCOMO’s consumer business is showing signs of recovery through stronger ARPU and MNP performance. Strategically, he framed IOWN, AI connectivity, and social infrastructure DX as key longer-term growth pillars, while also stressing disaster response readiness after the Kumamoto earthquake.

The CFO commentary was mostly limited to the reported quarter and FX sensitivity. Hattori said NTT Group overseas revenue is roughly JPY 3 trillion per year, and that a JPY 1 exchange-rate move at a JPY 150 to JPY 160 range would have roughly a JPY 20 billion impact on revenue and about one-tenth of that on profit. Management also said the S&P downgrade and higher rates were not material issues, with the interest-rate impact described as less than 0.1%.

Analysts pressed management on DOCOMO Financial Group, earthquake resilience, the impact of the S&P downgrade and higher rates, mobile pricing and revenue recovery, ecosystem differentiation versus rivals, and share trends. Shimada said DOCOMO Financial Group launched on July 1 and that the group aims to expand support for bank-account and securities opening at around 1,000 sites by the end of the fiscal year. On Kumamoto, he said service restoration was quick, Japan Roaming and battery support worked well, and BCP is reviewed after every incident. On mobile, he said service revenue decline narrowed to JPY 1.4 billion from about JPY 14 billion last year, ARPU rose JPY 70, and he believes revenue has bottomed, though cost pressure remains.