NTT DoCoMo profits rise strongly on cost-cutting
Japan's top mobile operator NTT DoCoMo said Wednesday its net profit jumped more than 41 percent in the first quarter as it slashed costs to make up for sagging revenue in a fiercely competitive market.
NTT DoCoMo Inc., part of the Nippon Telegraph and Telephone group, was a pioneer in third-generation telephones but has seen rivals chip away at its lead through aggressive promotional campaigns.
NTT DoCoMo said that its net income rose 41.3 percent to 173.51 billion yen (1.6 billion dollars) in the three months through June. Operating profit swung back to growth, going up 45.4 percent to 296.49 billion yen, a statement said.
But revenue dipped 1.1 percent to 1.17 trillion yen as the company introduced its latest offer to attract customers -- free calls among family members if they all sign up to DoCoMo.
DoCoMo maintained roughly a 50 percent market share, but its mobile handset sales declined by 20 percent from a year ago.
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