JAPAN TELECOM HOLDINGS ANNOUNCES FISCAL 2002 INTERIM RESULTS - 1

12 November 2002

JAPAN TELECOM HOLDINGS ANNOUNCES FISCAL 2002 INTERIM RESULTS

Consolidated ordinary profit climbs to 141.1 billion yen from 15.0 billion yen in fiscal 2001 interim results Annual forecasts revised upward

TOKYO: JAPAN TELECOM HOLDINGS CO., LTD. ("JAPAN TELECOM HOLDINGS") (TSE: 9434) today announced consolidated and non-consolidated results for the first six months of fiscal 2002. JAPAN TELECOM HOLDINGS turned in strong results that were ahead of expectations. Based on this performance, JAPAN TELECOM HOLDINGS also announced upward revisions to its full-year forecasts.

JAPAN TELECOM HOLDINGS's strong six-month performance was due to increased revenues, reduced customer acquisition and retention costs, and cost savings at its mobile telecommunications subsidiary, J-PHONE CO., LTD. ("J-PHONE"), combined with steady revenues, and larger-than-expected cost savings from restructuring and revitalization activities at its fixed-line telecommunications subsidiary, JAPAN TELECOM CO., LTD. ("JAPAN TELECOM").

"At the end of the six-month period, we are well ahead of plan in raising the competitiveness and efficiency of the company, " said William (Bill) Morrow, President of JAPAN TELECOM HOLDINGS. "Our revitalization efforts and cost-reduction programs are increasing profitability faster than we expected, and, at the same time, we continue to improve our market position." He added, "This strong interim performance has resulted in us raising our targets for the full year."

Consolidated financial summary

(billion yen, except where stated)
  Interim 2002 Interim 2001 Change
Operating revenue 884.8 849.7 +4.1%
Ordinary profit 141.1 15.0 +836.3%
Net profit/(loss) 43.5 (5.1) nm
Earnings/(loss) per share (yen) 13,621 yen (1,624) yen nm
EBITDA (%) 30.4% 16.8% 13.6pp