NTT fueled to profitability with DoCoMo's help

Nippon Telephone and Telegraph Corp. (NTT) group on Thursday released its fiscal year 2001 ending statement that shows its wireless unit, NTT DoCoMo Inc., helped bring the Japanese telecommunication vendor back into profitable territory.

NTT reported a consolidated net profit of 464.07 billion yen (US$3.76 billion) during fiscal 2001, ending March 31, the company said in a statement. This is an improvement over the last fiscal year when NTT reported a net loss of 67.81 billion yen. Still, the consolidated net profit missed the company's own target of 503 billion yen.

The profit is equivalent to 29,093.16 yen per share. Profits by NTT group were led by NTT DoCoMo, with a profit of 365.5 billion yen, according to NTT. DoCoMo has experienced strong adoption of its I-mode wireless Internet service. Total revenue for DoCoMo was 4.7 trillion yen, up 26 percent from last year.

DoCoMo had expected its I-mode service to grow to 17 million subscribers, however, it grew to approximately 22 million subscribers, the company said earlier this month. NTT announced a pretax profit of 83.98 billion yen (US$680 million) in fiscal 2000, which is down 28.6 percent from the year before, according to a statement from the Tokyo-based company. The company posted a net profit of 161.22 billion yen, which is a 66.1 percent increase from last year on revenue of 322.87 billion yen.

Revenue for the year was 11.41 trillion yen, an increase of 9.5 percent from the year before when it saw revenue of 10.42 trillion yen. NTT expects revenue this current fiscal year of 12.1 trillion yen, the company said.

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