NTT DOCOMO reports rising Q1 profits; maintains full-year outlook

30 Jul 2015

Japanese mobile operator NTT DOCOMO reports that first-quarter attributable net income for the April-June 2015 period, increased 23.8% year-on-year to JPY168.78 billion (USD1.37 billion) from JPY136.38 billion in 2014, as operating revenue edged up 0.1% to JPY1.077 trillion from JPY1.075 trillion and operating income rose 12.3% to JPY235.40 billion. EBITDA margin was unchanged at 36.0% while CAPEX fell 55.4% y-o-y to JPY93.1 billion as the operator focused on expanding the coverage of its ‘Premium 4G’ services and on cutting expenditure. DOCOMO counted a total of 29.67 million LTE users at 30 June 2015, up 17% from 25.29 million a year earlier, while the percentage of LTE-enabled smartphones increased to 94% from 83% previously. The number of LTE base stations on the DOCOMO network increased 1.6 fold to 106,900 in one year. Base stations for >100Mbps services increased to 62,800. For Premium 4G services, the number of LTE base stations increased to 3,500, it said with Kiyohiro Ohmatsuzawa, the group’s director of Networks, noting: ‘We are going to roll out the network very efficiently. We will also introduce Advanced C-RAN infrastructure’.

Adjusted free cash flow improved significantly (89.5%) over the period from negative JPY24.1 billion to positive JPY65.4 billion. Looking ahead for fiscal year ending 31 March 2016, DOCOMO continues to expect net income attributable to the company of JPY470 billion and operating revenues of JPY4.51 trillion. The outlook represents a 14.6% year-over-year increase in net income and a 2.9% increase in revenues.