NTT Reports Profit Decline Despite Revenue Growth

NTT reveals a drop in profit for fiscal 2024, while forecasting improved results for fiscal 2025. Annual dividends and share buybacks accompany plans for growth, signaling investor confidence.

Date: 09-05-2025

AI Rating: 6

Profit and Revenue Insights: NTT experienced a 21.8% drop in profit for fiscal 2024, decreasing to 1 trillion yen, with earnings per share (EPS) falling to 11.96 yen. This performance may concern investors, yet revenue grew by 2.5% to 13.70 trillion yen.

Future Projections: Looking ahead, NTT anticipates an increase in profits for fiscal 2025, projecting an attributable profit of 1.04 trillion yen, translating to 12.60 yen per share, representing growth of 4%. Additionally, operating profit expectations are up by 7.3% to 1.77 trillion yen, and revenues are predicted to grow by 3.5%. This positive outlook could boost investor confidence in the short-term.

Dividends and Share Buyback: The announcement of a slight increase in annual dividends per share to 5.3 yen and a substantial share buyback plan worth 200 billion yen should also positively influence stock sentiment. The buyback, covering 1.5 billion shares, indicates NTT's intention to enhance shareholder value, often perceived as a sign of confidence by the management.

Overall, while the decline in profit indicators for fiscal 2024 may raise concerns, the growth forecasts and shareholder-friendly strategies could present a favorable investment opportunity. Investors will need to weigh the recent performance against the projected growth to inform their strategies.

Stocks: NTT