NTT DOCOMO: 9M net profit down but operating revenue, profit edge up

1 Feb 2019

Japanese mobile telecommunications services provider NTT DOCOMO has published its financial results for the nine months ending 31 December 2018, with net income attributable to the company declining 12.9% year-on-year from JPY697.7 billion (USD6.61 billion) to JPY607.6 billion. Operating revenue, however, edged up 1.8% to JPY3.654 trillion for the nine-month period under review and operating profit climbed 5.4% to JPY902.023 billion. Sales derived from telecoms services accounted for the bulk – JPY2.358 trillion – of revenue, compared to JPY2.330 trillion in the corresponding year-ago period, and EBITDA rose 2.2% y-o-y to JPY1.271 trillion. DOCOMO’s telecommunications business includes 3G (branded FOMA) and 4G LTE (Xi) mobile phone services, optical-fibre (docomo Hikari) broadband service, satellite mobile communications services, international services and the equipment sales related to these services. Nine-month CAPEX, meanwhile, stood at JPY389.4 billion, down from JPY577.0 billion; EBITDA margin was 32.9% (broadly unchanged).

DOCOMO closed out December 2018 with a total of 77.517 million mobile subscribers, thanks to a net gain of 1.147 million y-o-y, of which 58.834 million were registered on the 4G Xi-branded network (9M 2017: 50.097 million), and 23.684 million were subscribed to its 3G network (26.272 million). Quarterly churn for the firm’s fiscal third-quarter improved to 0.57% from 0.62%. Aggregate ARPU was JPY4.830 per month – compared to JPY4,750. Average MOU inched up from 136 to 137 minutes per month. Finally, turning to the operator’s fibre broadband service, DOCOMO reported 5.545 million docomo Hikari users at end-2018, up from 4.762 million previously.