DOCOMO plots USD2.6bn share buyback

27 Oct 2017

Bloomberg writes that Japan’s largest mobile network operator (MNO) in terms of subscribers, NTT DOCOMO, is planning to buy back up to JPY300 billion (USD2.6 billion) worth of its own shares in order to rally shareholder returns after two consecutive quarters of falling profits. In a statement delivered yesterday (26 October), Tokyo-based DOCOMO confirmed that the buyback will take place between 27 October and 31 March 2018, and if completed will bring total stock repurchases by the company to JPY2.79 trillion since 2002. Bloomberg notes that DOCOMO shares have gained just 1.4% this year, compared with a 15% advance for the benchmark Topix index. The cellco is finding it harder to grow its profits in a heavily saturated domestic mobile market where rival MNOs and MVNOs have been slashing prices to try and lure away users.