DoCoMo lowers forecasts for 2004

7 May 2004

Japanese cellco NTT DoCoMo has posted a consolidated net profit of JPY650 billion for the twelve months to the end of March, up from JPY212.5 billion the previous year, while revenues grew from JPY4.81 trillion to JPY5.05 trillion. Despite the promising results, the operator has lowered its forecasts for fiscal 2004, blaming bigger family discounts, price cuts, the introduction of a flat-rate data plan and an anticipated increase in subsidy costs. It expects to see profit fall to JPY830 billion and sales to slip 2.5% to JPY4.92 trillion in the year to the end of March 2005.

DoCoMo had 45.9 million subscribers and a market share of 57% at the end of March. Of the total, 3.05 million were 3G customers, an increase of 50% in the year. The operator expects to have 10.6 million 3G subscribers by the end of March 2005.