TOKYO -(Dow Jones)- NTT DoCoMo said Friday its group net profit tumbled 43% on year in the January-March quarter, partly due to higher sales promotion costs.
Japan's top mobile communications carrier reported net profit of Y53.6 billion in the just-ended quarter, down from Y94.1 billion in the corresponding period a year earlier. The slide was also caused by a sharp decline in special gains a year earlier, when the company booked proceeds from its sale of shares in Hutchison 3G UK Holdings Ltd. and KPN Mobile N.V.
Its operating profit tumbled 31% to Y96.6 billion from Y139.2 billion, while revenue edged up 0.6% to Y1.191 trillion from Y1.184 trillion.
The Tokyo-based company faces stiffer competition from rivals such as KDDI Corp. and Softbank Corp., especially after the government last October began allowing mobile subscribers to keep their numbers when they switch carriers. In November, NTT DoCoMo suffered its first-ever drop in mobile phone customers.
For the full fiscal year ending March 2008, NTT DoCoMo forecasts a 4.1% rise in group net profit to Y476 billion and a 0.8% rise in operating profit to Y780 billion. Group revenue is pegged at Y4.728 trillion, down 1.3%.
NTT DoCoMo's earnings are based on U.S. accounting standards.
-By Hiroyuki Kachi, Dow Jones Newswires, 813-5255-2929, hiroyuki.kachi@dowjones.com
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Posted to the site on 27th April 2007
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