UPDATE: NTT DoCoMo, Softbank Earnings Take Divergent Paths
July 30 2009 - 7:00AM
Dow Jones News
NTT DoCoMo Inc. (9437.TO) and Softbank Corp. (9984.TO) Thursday
reported fiscal first quarter results that contrasted each other,
as DoCoMo saw its profit drop on shrinking per-user revenue while
Softbank enjoyed gains on increased service fees and handset
sales.
NTT DoCoMo, Japan's No. 1 cellphone carrier with more than 50
million subscriptions, posted a 15% decline in its net profit to
Y147.38 billion from Y173.51 billion a year earlier.
By contrast, Softbank's net profit for the April-June quarter
jumped 41% to Y27.38 billion from Y19.37 billion in the same period
a year earlier. It was much better than a consensus projection for
a Y11.2 billion profit compiled by data provider Thomson Reuters
from a survey of 13 analysts.
Boosted by the popularity of Apple Inc.'s (AAPL) iPhone, which
it sells in Japan, Softbank said its overall handset sales
increased in the April-June quarter at a time when most carriers
are selling fewer handsets.
Softbank said brisk handset sales and increased service fees
boosted its mobile phone segment earnings in the April-June
quarter, putting the No. 3 carrier in a better position to take on
bigger rivals DoCoMo and KDDI Corp. (9433.TO).
Softbank's operating profit climbed 27% to a record Y108.29
billion from Y85.09 billion a year earlier, helped by a 36% growth
in the core mobile communication operations to Y60.2 billion.
Revenue for the same quarter rose 2.9% to Y666.33 billion from
Y647.26 billion.
Although its average monthly per-user revenue of Y4,030 for the
quarter was down 3.5% from a year earlier, it improved
significantly from Y3,830 in the January-March quarter.
On the other hand, an NTT DoCoMo spokesman said falling revenues
from phonecall charges weighed on earnings. The company's average
revenue per user dropped 7.6% to Y5,440 from Y5,890 a year
earlier.
Handset sales were weak at DoCoMo, falling 12% on year, but the
spokesman said the sales decline was mostly canceled out by smaller
sales-related costs.
DoCoMo's group revenue fell 7.3% to Y1.085 trillion from Y1.170
trillion, while operating profit dropped 15% to 251.82 billion from
Y294.49 billion.
-By Juro Osawa, Dow Jones Newswires; 813-5255-2929;
juro.osawa@dowjones.com