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Nippon Telegraph And Telephone Management Discusses F3Q12 Results - Earnings Call Transcript

Page 9, talks about contributing factors by segment, let me start from mobile. NTT DOCOMO has already announced its financial results so therefore I will not talk about this. As for Data Communications, we see expanded impact from increased number of consolidated subsidiaries such as Key which was acquired at the end of the last fiscal year. As a result data communications are increase of 31.3 billion yen and operating income also increased by 5.4 billion yen, 5.6 billion yen correction. We believe that fully our target can be reached.

As for long distance and international communication business, operating revenue increased by 323.4 billion yen on year-on-year basis due to the fact that Dimension Data became a subsidiary. Also Dimension Data itself when they close their books at the end of September 2011 was able to achieve a very strong growth of more than 10% in both operating revenue and operating income. This is after the adjustment of DU exchange rate.

As for operating income, on top of the five, the Dimension Data became a subsidiary NTT Communications was able to achieve reduction in access charge as well as cost reduction. So therefore it increased by 23.7 billion yen on a year-on-year basis. So, for these segments we would like to realize further increase in profit going forward.

Turning now to regional communication business, operating revenue has downward trend in voice revenue and also IP Service revenue increased and also telephone equipment sales revenues did not go as much as we had anticipated. So therefore, operating revenue declined by 135.2 billion yen and also operating income also declined substantially by 57 billion yen, on a year-on-year basis in particular at NNT East due to the impact of the earthquake the purchase of equipments was behind. And so, therefore as a result, revenues from telephone equipment sales were also behind.

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