News From Telecom World

NTT DoCoMo net profit soars 37%, upholds forecast (Japan)

Posted on: November 2, 2008

NTT DoCoMo has posted a 37% rise in net profit for its fiscal second quarter ended 30 September on lower handset subsidies and buying costs, and maintained its full-year profit forecast. According to a media report, DoCoMo’s profit increase comes in the wake of its November 2007 decision to introduce a new business model that cut handset subsidies and locked customers in on longer plans, albeit with the fillip of instalment payment plans.

The other contenders in Japan’s mobile market, KDDI and Softbank have introduced similar business models. KDDI posted a rise of 27% in its quarterly profit for the three months to 30 September. Softbank said profit in the period augmented 7% year-on-year. DoCoMo noted that with the introduction of new strategy, handset sales have been shrinked and cut its sales and profits targets accordingly. Operating Profit in the period grows to JPY280.5 billion from JPY204.6 billion a year earlier, although revenues slipped 4% to JPY1.1 trillion. The telco forecasted the operating profit of JPY830 billion for the full year to 31 March 2009.

Wireless Federation

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