JAPAN TELECOM REVISES UPWARD ITS FISCAL 2002 NON-CONSOLIDATED FORECASTS-19 August 2002
JAPAN TELECOM HOLDINGS CO., LTD.
JAPAN TELECOM REVISES UPWARD ITS FISCAL 2002 NON-CONSOLIDATED FORECASTS
Revenue on track, operating efficiency initiatives boost
expected ordinary and net profit
TOKYO, JAPAN TELECOM HOLDINGS CO., LTD. (TSE: 9434) today revised upward its non-consolidated financial forecasts for the full fiscal year 2002, ending 31 March 2003. JAPAN TELECOM HOLDINGS CO., LTD. ("JAPAN TELECOM Holdings") attributes the better-than-expected performance primarily due to sustained revenue growth and the results of operating efficiency improvement measures in its fixed-line business.
On a non-consolidated basis, JAPAN TELECOM Holdings now expects ordinary profit of 8 billion yen and net profit of 10 billion yen, an increase of 4.5 billion yen and 8 billion yen respectively on the original forecast. The revenue forecast remains on track for an encouraging performance for the full fiscal year 2002.bThe impact of these changes on the consolidated forecasts for ordinary profit of 183 billion yen, and for net profit of 48 billion yen, are not material and therefore the consolidated forecasts remain unchanged.
In addition to the effects of sustained revenue growth and improved operating efficiencies in the fixed-line business, the expected improvement in non-consolidated net profit is also attributable to a favourable tax rate resulting from the JAPAN TELECOM group reorganisation, which took effect on 1 August 2002. This will increase net profit by 4 billion yen in fiscal 2002.
Forecasts for JAPAN TELECOM Holdings' non-consolidated operating revenue, ordinary profit, and net profit were originally released on 28 May 2002. Those forecasts were based on the expected performance of JAPAN TELECOM CO., LTD. through to 31 July 2002 (during which period it was the operating company for the fixed-line and certain other businesses) and the expected performance of JAPAN TELECOM Holdings from 1 August 2002 through to the end of the fiscal year. The revised forecasts have been prepared on the same basis.
JAPAN TELECOM Holdings' President, William (Bill) Morrow, said, "We are pleased to report that our initiatives to improve the operating efficiency are benefiting the fixed-line business's bottom line quicker than we had expected, and these complement our solid revenue performance which is in line with our forecasts. We were particularly pleased with a strong showing in data revenue and a slightly better than expected performance in voice, both of which have contributed to our sustained revenue performance."
"We will continue our efforts, with a view to bringing even greater efficiencies to the operation going forward in order to provide a focused quality service to our customers. In July 2002, we implemented a new customer-focused initiative, our 'passion for customers' campaign, and this has already resulted in new data orders that exceeded our original target," Morrow continued.
JAPAN TELECOM Holdings' revised and prior fiscal 2002 non-consolidated forecasts, and its unchanged consolidated forecasts, are as follows:
9 August 2002
FY2002 revised forecast
28 May 2002
FY2002 prior forecast
28 May 2002