NTT Docomo projected profitability of its consumer segment to return to growth in fiscal 2024 (ending 31 March 2024), driven by rising 5G users and adoption of high-tier data plans.

On an earnings call, CEO Motoyuki Ii stated Docomo aims to reverse the downward trend in mobile profit through 5G migration and cost-efficiency efforts.

Docomo expects mobile revenue to stabilise in fiscal 2024 at JPY3.4 trillion ($25.2 billion) and operating revenue to increase 1.8 per cent to JPY617 billion.

It forecast 5G subscribers to increase to 28.2 million year-on-year from 20.6 million at the end of fiscal 2023.

Ii said Docomo’s enterprise and Smart Life units are both growth drivers and exceeded its annual guidance, offsetting declines in mobile.

Net profit in fiscal Q4 2023 declined 1.6 per cent to JPY128.4 billion and operating revenue grew 8.3 per cent to JPY1.6 trillion.

Mobile service revenue fell 1.4 per cent JPY644.5 billion.

Aggregate ARPU declined 2.1 per cent to JPY4,640.

Equipment sales rose 11.3 per cent to JPY205.2 billion.

Total mobile subscribers rose 3.2 per cent to 87.5 million, with LTE down 3.6 million to 57.8 million.

Smart Life revenue increased grew 32.7 per cent to JPY316.1 billion and enterprise 7.8 per cent to JPY509.9 billion.

Full-year capex was flat at JPY706.3 billion and is forecast to increase 3.1 per cent to JPY728 billion in fiscal 2024.

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