NTT DOCOMO reports 14.5% rise in net profit

25 Oct 2013

Japanese telecoms giant NTT DOCOMO has published its financial results for the six months ended 30 September 2013 (1H FY2013), reporting a marginal 0.4% decrease in revenues to JPY2.199 trillion (USD2.261 billion) from JPY2.207 trillion reported twelve months earlier. Operating income also decreased by JPY8.3 billion to JPY473.2 billion year-on-year, mainly attributed to the impact of discount programmes and a decrease in minutes of use (MOU), partially compensated by ‘expansion of new business fields’ as a result of sales promotions. The company’s net profit, however, climbed to JPY300.4 billion, a 14.5% rise from the JPY285.9 billion reported in 1H FY2012. Further, NTT DOCOMO’s CAPEX decreased by JPY59.2 billion to JPY301.8 billion in the period under review. The company forecasts that its operating revenues will amount to JPY4.64 trillion by the end of FY2013 (31 March 2014), in line with its original projections, with estimated net profit of JPY510 billion forecast for the period.

In operational terms, NTT DOCOMO reported a total of 61.77 million subscribers at end-September 2013, up 1.6% year-on-year from 60.79 million in 1H FY2012. Further, the company reported that subscribers to its 3G services, marketed under the ‘FOMA’ brand, decreased by 16.9% y-o-y to 45.374 million users, while subscribers to its 4G Long Term Evolution (LTE) service, marketed under the brand name ‘Xi’, have increased 2.6-fold to 16.398 million compared to the 6.198 million reported twelve months previously. NTT DOCOMO also said that it is well on its way to meeting the previously set target of 25 million Xi LTE subscribers by the end of FY2013.