DoCoMo: Q4 net income doubles on back of cuts in handset subsidies

28 Apr 2010

Japan’s leading mobile operator by subscribers NTT DoCoMo today announced that its fourth-quarter net income, for the year to 31 March 2010, more than doubled year-on-year, a fact it attributed to its decision to slash the amount it pays to subsidise handset sales. DoCoMo’s net profit leapt from JPY34.2 billion (USD365.6 million) to JPY75.4 billion in the period under review, boosted by a 7.6% cut in operating costs, it said. The unit’s operating profits increased dramatically from JPY84.2 billion to JPY131.6 billion, although Q4 revenues dipped 2.5% y-o-y to JPY1.042 trillion as a rise in network services sales offset much of the loss attributed to revenue from the sale of handsets. For the full-year to 31 March 2010, DoCoMo’s net income increased 4.9% to JPY494.8 billion from JPY471.9 billion. In its fiscal year 2010/11 the cellco expects to book a net profit of JPY497 billion.