DoCoMo 1H profit grows 27.8%

Japan’s NTT DoCoMo grew its net profit for the six months ending in September by 27.8% to 405.41 billion yen ($3.87 billion), on the back of a 3.3% increase in revenue to 2.29 trillion yen.

DoCoMo attributed the revenue growth in part to recovery of telecoms services revenue as a result of the growth in mobile data consumption of segments of its postpaid subscribe base.

Expanding demand for smartphones and tablets and the growth in the number of DoCoMo Hikari fiber customers, as well as the operator’s smart life and other non-core businesses, also contributed to the gains.

Total telecoms revenue grew 2.7% to 1.86 trillion yen. DoCoMo’s mobile subscriber base grew 6.5% to 72.9 million, with LTE customers up 19.6% to 41.28 million, while total docomo Hilari subscriptions grew to 2.53 million.

ARPU increased 6.8% to 4.380 yen, driven by a 7.5% growth in data ARPU to 3,140 yen. But voice ARPU also grew by 5.1% to 1,240 yen, and MOU was up 3.8% to 136.

Capex meanwhile reached 246.1 billion yen, up 12% from a year earlier, as DoCoMo invested in expanding the reach of its “premium 4G” service.

Looking ahead to the full financial year, DoCoMo said the competitive environment has changed significantly, with competition intensifying due to the government’s pro-competition policy, the market entry by MVNOs and other factors. Technological developments have also brought about active competition and collaboration with players from other industries.

But the company has raised its projected net income for the full year to 655 billion yen. This would compare to a net income of 548.4 million in the prior financial year. Revenue is meanwhile expected to grow to 4.61 trillion yen, from 4.57 trillion yen a year earlier.