Japanese mobile provider NTT DOCOMO has reported that net income attributable to the company for the year ended 31 March 2019 fell to JPY663.63 billion (USD5.95 billion) from JPY790.83 billion in FY2017/18, as operating revenues increased 1.7% year-on-year to JPY4.84 trillion, operating profit climbed 2.7% to JPY1.01 trillion and EBITDA rose to JPY1.56 trillion from JPY1.51 trillion. In its earnings release DOCOMO noted that competition in the domestic mobile market ‘continues to intensify due to the enhanced government’s pro-competition policy, the spread of low-cost smartphone services by sub-brands and MVNOs, new entrants from other industries deciding to enter the market and other factors’.
Capital expenditure for the year ended 31 March 2019 was JPY593.70 billion, down 2.9% from JPY577.00 billion on an annualised basis. Broken down by segment, DOCOMO said its mobile telecoms business generated service revenue of JPY3.13 trillion (up 1.2%) and operating income of JPY866.30 billion (up 1.4%). Its optical fibre business and other telecoms businesses, meanwhile, contributed service revenue of JPY286.30 billion, compared to JPY225.40 billion previously. Overall operating costs, however, edged up to JPY3.83 trillion in FY2018/19, from JPY3.78 trillion previously.
Operationally speaking, at end-March 2019 NTT DOCOMO, a subsidiary of NTT Corp, had a total of 78.453 million cellular subscribers, up 2.7% from 73.370 million a year before, of which 55.872 million were 4G (branded Xi), up from 50.097 million at end-March 2018, and 22.581 million were 3G (FOMA), down from 26.273 million year-on-year. Monthly blended ARPU increased to JPY4,800 from JPY4,710 and minutes of use (MOU) edged down to 134 minutes from 136 previously; churn was 0.57%, compared to 0.65% previously. In addition, the carrier reported that its fibre broadband service, docomo Hikari, had 5.759 million subscribers compared to 4.762 million at 31 March 2018.