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Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

NTT (Nippon Telegraph & Telephone) / Equity Bottom-Up

NTT (Nippon Telegraph & Telephone) (9432 JP)

<p>NTT posted results and guidance for FY21 ahead of Redex and consensus expectations. One key takeaway is how little mobile price reductions have impacted the company outlook with Q4 mobile revenue growth better than expected and forecast erosion in that segment less than half of what we had been looking for. That was augmented by another quarter of solid results from the fixed-line local businesses and a return to growth for the ICT businesses after six quarters of erosion. The FY21 dividend of ¥110 is in line with expectations and whilst a share buyback was not announced today, a positive outlook on financial progress in FY21 leads us to believe this will come at some point. We remain at Buy.</p>

NTT posted results and guidance for FY21 ahead of Redex and consensus expectations. One key takeaway is how little mobile price reductions have impacted the company outlook with Q4 mobile revenue growth better than expected and forecast erosion in that segment less than half of what we had been looking for. That was augmented by another quarter of solid results from the fixed-line local businesses and a return to growth for the ICT businesses after six quarters of erosion. The FY21 dividend of ¥110 is in line with expectations and whilst a share buyback was not announced today, a positive outlook on financial progress in FY21 leads us to believe this will come at some point. We remain at Buy.

Nippon Telegraph and Telephone: Q4 20 Results/FY21 Guidance – A Return to Sustainable Growth