Nippon Telegraph & Telephone Stock Earnings Reports

NTT reported Q1 FY2025 results with operating revenue at a record JPY 3,262 billion (up JPY 22 billion YoY) but operating profit and EBITDA declined (operating profit JPY 405.2 billion, down JPY 30.6 billion YoY; EBITDA JPY 801.4 billion, down JPY 13.9 billion). A stronger yen reduced revenue by roughly JPY 50 billion. Segment highlights: Integrated ICT saw revenue growth from enterprise and Smart Life businesses but profit was pressured by DOCOMO's mobile actions (ARPU pressure and higher marketing/sales spend to shore up customers and network quality); Global Solutions held roughly flat after FX headwinds; Regional Communications grew on fiber and enterprise demand; Urban Solutions (data center engineering) increased revenue and profit. Key strategic updates: NTT will launch tsuzumi 2, a domestically developed LLM in October with materially improved accuracy and on-premise/single-GPU capability; NTT DC REIT listed in Singapore to accelerate data center investment recycling and fund growth; IOWN demos at Expo 2025 showed large power reductions and a commercial version is targeted in FY2026; NTT East/West plan to migrate copper fixed-line services to fiber/wireless by 2035 with phased customer transition. On corporate actions: management expects to proceed with the TOB for NTT DATA and to centralize decision-making to be more agile for global/AI-related investments. Management says they remain focused on cost reduction, expanding enterprise/Smart Life growth, and achieving the full-year consolidated plan despite near-term profit headwinds.