NTT (Buy) - Q2 21 Results Reaction: Profit Beat with Good News in Fixed and Mobile

Tencent – Riot Grows Valorant and Dips Its Toe in the Metaversal Waters

Japan Telecom Sector - Regulator to Signal Level Playing Field for DoCoMo

NTT (Buy) - Q1 21 Results Reaction: Buyback Confirmed

Japan Telecoms - Surprise Resignation of the Prime Minister Should Ease Regulatory Pressure

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 has unveiled its plan to integrate ICT subsidiaries under wireless unit DoCoMo and boosted FY23 EPS guidance from ¥320 to ¥370. NTT was already running well-ahead of pace to reach the former but the new target is 6% above consensus forecasts as cost reductions/synergies from the DoCoMo acquisition are fully factored in. Other notable targets include a 25% increase in enterprise revenue from ¥1,600bn to ¥2,000bn ($18bn) over five years which seems achievable considering double-digit sector growth reported by competitors.  NTT trades at a discount to peers despite setting growth targets that are more than 2x higher. We remain at Buy. </p>

NTT has unveiled its plan to integrate ICT subsidiaries under wireless unit DoCoMo and boosted FY23 EPS guidance from ¥320 to ¥370. NTT was already running well-ahead of pace to reach the former but the new target is 6% above consensus forecasts as cost reductions/synergies from the DoCoMo acquisition are fully factored in. Other notable targets include a 25% increase in enterprise revenue from ¥1,600bn to ¥2,000bn ($18bn) over five years which seems achievable considering double-digit sector growth reported by competitors.  NTT trades at a discount to peers despite setting growth targets that are more than 2x higher. We remain at Buy. 

NTT (Buy) - Mid-Term EPS Guidance Boost as a Fully Integrated DoCoMo Drives Growth