DoCoMo reveals 21% fall in net income

28 Jul 2006

Japan’s largest mobile operator by subscribers and revenue, NTT DoCoMo, has reported a 21% fall in net profit to JPY163.5 billion (USD1.4 billion) for the quarter ended June 2006 compared with the corresponding period last year. The decline is partly due to a lack of one-off gains this year: in 2005 DoCoMo booked a special capital gain of JPY62 billion following the disposal of its 20% stake in Hutchison 3G UK. Another factor behind the slump is the 5.2% rise in operating costs as the cellco accelerated subscriber migration to its FOMA 3G service. The number of FOMA subscribers reached 26.2 million at the end of June, approximately 50.7% of DoCoMo’s entire subscriber base. The Japanese giant is aiming to move two-thirds of current subscribers to the FOMA service by the end of March 2007. Despite the relatively poor results, the company stood by its full-year forecasts, projecting net profit of JPY488 billion on revenue of JPY4.84 trillion.