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DoCoMo to beat operating profit forecast

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CIOL Bureau
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TOKYO: NTT DoCoMo Inc., Japan's top mobile operator, will likely beat its 2005/06 operating profit forecast as fewer users cancelled subscriptions and revenues per user recovered, the Nihon Keizai business daily said on Wednesday.

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DoCoMo is expected to post a 6 percent year-on-year rise in group operating profit to about 830 billion yen ($7.21 billion) for the year to next March, compared with the firm's previous projection of 810 billion yen, up 3.3 percent, the paper said.

That compares with a consensus of 840.93 billion yen, according to 21 analysts polled by Reuters Estimates.

A DoCoMo spokesman declined to comment ahead of the announcement of its results on Oct. 28.

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In July, DoCoMo reported an unexpected 4 percent rise in first-quarter operating profit and said the rate of customers leaving its service fell to a record low of 0.8 percent.

DoCoMo is also benefitting from a higher-than-expected average monthly revenue per user in the first quarter, the newspaper said.

For the six months ended Sept. 30, DoCoMo likely will post an operating profit of about 550 billion yen, higher than 545.4 billion yen in the year-ago period, the report said.

Helped by the higher profit, DoCoMo's parent Nippon Telegraph and Telephone Corp. (NTT) is likely to top its full-year group operating profit forecast of 1.05 trillion yen, down 13 percent from a year earlier, the report said.

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