NTT Docomo Expects Operating Profit Fall on New Rate Plans
Tokyo, April 26 (Jiji Press)--NTT Docomo Inc. <9437> said Friday that it expects a slump in consolidated operating profit in the current year through March 2020 due to its new rate plans.
The new plans will be introduced in June this year, reducing mobile communications fees by up to 40 pct. It will be the company's first operating profit decline in five years.
The mobile phone carrier projects an operating profit of 830 billion yen, down 18.1 pct from the previous year. Sales are seen dropping 5.4 pct to 4.58 trillion yen.
President Kazuhiro Yoshizawa told a press conference that the new plans, which will separate mobile phone purchases costs from communications fees, will push down sales by 250 billion yen.
For the year that ended last month, NTT Docomo reported sales of 4,840,849 million yen, up 1.7 pct. Operating profit grew 2.7 pct to 1,013,645 million yen.
[Copyright The Jiji Press, Ltd.]