February 5, 2008

Profit plunges at Japan's top telecom

TOKYO - Nippon Telegraph and Telephone Corp., Japan's top telecommunications company, reported a 21.8 percent drop in profit for the April-December period Monday due to declines in voice and fixed-line operations.

Tokyo-based NTT's profit for the nine months fell to 320.86 billion yen ($3 billion) from 410.14 billion the same period the previous year, the company said.

NTT's fiscal year begins April 1. The company did not breakdown quarterly results.

Sales for the first three fiscal quarters edged down 1.1 percent to 7.844 trillion yen ($73.45 billion) as growing income from data transmission and broadband links took a hit from lackluster results in voice and fixed-line operations.

Although profitability declined in mobile businesses, the decrease was smaller than what was recorded the previous year, the company said.

NTT left its profit forecast unchanged for the full fiscal year to March 31 at 530 billion yen ($4.96 billion), up 11.1 percent from the previous year.

NTT shares edged up 0.6 percent to 506,000 yen ($4,737). Earnings were announced after trading closed.

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