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DoCoMo Q4 profit falls 38% on quake costs

29 Apr 2011
00:00
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Japan's NTT DoCoMo said its fourth quarter profit fell 38% year-on-year, as quake expenses and a decline in revenue cut into on the company's bottom line.

Profit for the quarter ending in March fell to 46.5 billion yen ($570.5 million), while revenue dipped 2.6% to 1.04 trillion yen.

DoCoMo reported 7.1 billion yen worth of quake-related expenses for the period.

In an earnings call, CEO Ryuji Yamada said the company plans to spend a total of 30 billion yen on recovery, including 10 billion yen for full restoration and 20 billion yen to implement new disaster preparedness measures.

Around 6,700 base stations were knocked out of commission from the earthquake and tsunami, but the company has revealed it hopes to have all base stations outside of a 30km radius of the Fukushima nuclear plant restored by May 31.

For the full year, DoCoMo's profit fell 0.9% to 490.5 billion yen, while operating revenues fell 1.4% to 4.22 trillion yen.

But operating profit grew 1.3% 850 billion yen, and Yamada said this figure would have been closer to 870 billion yen if it weren't for the earthquake.

 

ARPU fell 5.2% from the prior year to 5,070 yen. Voice revenue fell by 198.3 billion yen, but DoCoMo said its efforts to increase data usage led to packet revenue growing by 1.06 billion yen.

 

DoCoMo added 1.93 million mobile subscribers during the year, and launched its LTE service, Xi, which by the end of March had around 25,000 subscribers.

 

Yamada said this was only half the company's target of 50,000 adds for the period, but added that the company will go after 1 million subscribers in the current financial year.

 

The company is forecasting a 2.3% increase in net profit and a 0.1% rise in operating revenues for this year. IE research analyst Yui Funayama told Telecomasia the earthquake is not expected to have a significant financial impact on Japanese mobile operators' earnings in the long term.

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