DOCOMO Q1 revenue falls on lower mobile/equipment sales; reports 149,000 5G users

3 Aug 2020

Japanese carrier NTT DOCOMO, a 64.1%-owned subsidiary of Nippon Telegraph and Telephone Corporation (NTT Corp), has released its first-quarter financial results for the three months ended 30 June 2020. The carrier reported that its quarterly operating revenues for the three months under review (Q1 FY21) reached JPY1.10 trillion (USD10.39 billion), down 5.3% from JPY1.16 trillion year-on-year, as rises in revenue from optical-fibre broadband services (up JPY12.1 billion to JPY91.0 billion) and ‘other revenue’ (up from JPY213.0 billion to JPY236.2 billion) failed to offset falls in mobile communication revenue and equipment sales, which dropped to JPY771.9 billion and JPY90.0 billion, respectively. Operating profit was up though, at JPY280.5 billion from JPY278.7 billion in the prior year, while EBITDA was stable at JPY406.0 billion, up from JPY400.6 billion. First-quarter net profit attributable to shareholders increased 1.5% to JPY195.3 billion from JPY192.3 billion in the previous year. Capital expenditure of JPY90.8 billion marked a significant reduction on the JPY234.7 billion invested in the fourth quarter, and was down a net JPY7.1 billion on the JPY97.9 billion figure in Q1 FY20.

In operational terms, the provider reported 80.615 million mobile subscribers at 30 June 2020, up 2.1% from 78.896 million at 30 June 2019, of which 62.397 million were LTE users (up from 57.285 million), 18.069 million were on its 3G network (down 16.4%) and 149,000 were registered to its fledgling 5G network – launched in March this year (when it reported 14,000 users). ‘DOCOMO Hikari’-branded fibre-optic broadband subscribers, meanwhile, reached 6.656 million, up 11% compared to the 5.988 million year-ago figure. Mobile ARPU fell to JPY4,250 from JPY4,280 in June 2019, while Hikari ARPU improved to JPY550 from JPY490.