NTT DoCoMo Profit Rises 38 Percent in 3Q

Net income at NTT DoCoMo Inc. for the fiscal third quarter rose to 130 billion yen (US$1.22 billion; euro0.83 billion), up from 93.9 billion yen the previous year.

Group revenue slipped 1.38 percent to 1.197 trillion yen (US$11.34 billion; euro7.69 billion).

Cost cutting efforts through the introduction of new subscription service methods and cheaper handsets have contributed to the profit increase, the company said.

The company said introduction of popular high-tech handsets also contributed to the upbeat quarterly results.

Although DoCoMo dominates Japanese cell phone users, it has struggled to add new users in the face of fierce competition with rival carriers KDDI Corp. and Softbank Corp.

The new services "got off to a good start," DoCoMo President Masao Nakamura said in a statement. "While the competitive environment is expected to remain harsh, we are committed to taking up the challenge to create new values and move one step ahead."

For the first nine months of its fiscal year, DoCoMo said its group net profit fell 6.7 percent to 376.5 billion yen from 403.7 billion from a year earlier.

With the upbeat fiscal third quarter results, the company left its annual net profit forecast for the fiscal year ending March 31 unchanged at 476 billion yen, up 4.1 percent from a year earlier.

Shares of NTT DoCoMo, which announced earnings after trading ended on the Tokyo Stock Exchange, rose 1.24 percent Tuesday to 163,000 yen (US$1,529; euro1,036).