NTT Inc

Q3 FY2025 (9 months ended Dec 31, 2025): strong top-line and profit growth, but FX headwind - Operating revenue: JPY 10,421bn, +JPY 371.3bn YoY (record high). - FX impact: operating revenue impacted by ~JPY 55bn negative from foreign exchange (linked to enterprise business expansion across group + REIT data center transfers). - Profit: Operating profit JPY 1,457.1bn (+JPY 57.9bn YoY); Profit attributable JPY 926.1bn (+JPY 75.4bn YoY). - EBITDA: JPY 2,657.3bn (+JPY 104.8bn YoY), despite DOCOMO-related cost investments.

DOCOMO is the key swing factor: costs up for customer base + network quality; competition remains intense - Downward revision in full-year guidance driven by DOCOMO: competition requires greater-than-expected investment. - Operating profit revised down by JPY 83bn (full-year). - Network quality capex/opex pressure: management cited ~JPY 50bn/year incremental investment plan for quality, plus higher base-station construction cost pressures. - Sales promotion costs higher than expected: competitors’ continued promos; handsets returned at higher-than-expected rates → required additional provisions, increasing costs. - 3G end (FY-end) handled via migration measures: recommends 4G/5G, handset discounting; expects ~2m subscriptions remain (mostly IoT, likely to persist) and emphasizes careful customer migration support. - Outlook for DOCOMO next year: “This year likely the bottom” for DOCOMO; customer share target to maintain ≥35% and reinforce customer base/quality. However, competition is hard to forecast and could keep pressure on spending.

Segment trends: “Smart life/enterprise growth offsets mobile decline,” and Global Solutions/Regional Communications held up - Integrated ICT: consumer mobile declined (reduced mobile comms revenue), but smart life (finance services) + enterprise business lifted revenue YoY. - Operating profit declined YoY due to reinforced-customer-base + improved network-quality costs. - Global Solutions: despite ~JPY 55bn FX negative, revenue and operating profit increased YoY, helped by domestic/international growth and REIT data center transfers. - Regional Communications: legacy revenue down, but overall revenue/profit up YoY driven by enterprise + fiber expansion; net adds in fiber increased YoY (10 giga plan + bundled condo services). - “Others” (e.g., real estate/energy): NTT Urban Solutions expansion supported revenue growth.