TOKYO -(Dow Jones)- NTT DoCoMo said Friday its group net profit sagged 21% in the April-June quarter, dented by increased costs of promoting its 3G service and enhancing its network facilities.
Japan's largest mobile telecommunication carrier said its net profit in the three-month period fell to Y163.51 billion from Y207.86 billion a year earlier.
The weaker profit by on-year comparison is also due to the company's Y62 billion profit a year earlier from selling Hutchison 3G UK Holdings Ltd. shares.
NTT DoCoMo said it is on track to meeting its full fiscal year to March earnings projections. The Tokyo-based mobile phone service operator left unchanged its group net outlook for the year at Y488 billion and revenue estimate of Y4.838 trillion.
On the revenue side, NTT DoCoMo's income from its 2G and 3G services grew 3.5% to Y1.065 trillion despite tough competition with local rival KDDI Corp., lifted by an expanded subscriber base and a reduced churn rate, a measure for a loss of subscribers.
Its overall group revenue rose 2.7% to Y1.219 trillion from Y1.187 trillion a year earlier.
Average monthly revenue per unit of its 2G and 3G services combined was down 0.6% on year at Y6,900, but on a quarter-on-quarter basis, it went up for the first time in four quarters.
NTT DoCoMo's financial results are based on U.S. accounting standards.
-By Kazuhiro Shimamura, Dow Jones Newswires; 813-5255-2929; kazuhiro.shimamura@dowjones.com
-Edited by Shawn Schroter
(END) Dow Jones Newswires"
Posted to the site on 28th July 2006
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