DoCoMo reports 16% fall in Q2 profit, but raises outlook on strong demand for smartphones

2 Nov 2011

Japan’s largest mobile operator by subscribers, NTT DoCoMo, said net income for its fiscal second-quarter ended 30 September 2011 dropped 16% year-on-year to JPY140.27 billion (USD1.79 billion) from JPY167.59 billion, but increased its full-year outlook on the back of strong consumer demand for smartphones. The cellco said operating profit for the period fell 17% y-o-y to JPY240.79 billion from JPY290.95 billion, although quarterly revenues increased 1.6% to JPY1.066 trillion. DoCoMo, which is looking to establish a key position for itself in the smartphone market by offering Sony Ericsson and Samsung devices equipped with Google’s Android operating system, noted however that blended average revenue per user (ARPU) dipped 4% to JPY4,970 from JPY5,200.

Nevertheless, DoCoMo has revised upwards its profit forecast for the full year ended 31 March 2012 to JPY515 billion from JPY502 billion. The cellco now targets sales of 8.5 million smartphones in the current year – up 2.5 million on its earlier forecast. It also expects FY2011/12 operating profit to reach JPY870 billion (from an earlier projection of JPY850 billion), and for revenue to top JPY4.240 trillion (versus JPY4.230 trillion). In the longer term, DoCoMo aims to increase smartphone subscriptions to 40 million by fiscal 2015 from an anticipated 10.2 million in fiscal 2011.