Fri, Oct. 30, 6:38 PM
- NTT DoCoMo (NYSE:DCM) closed up 2.8% in U.S. trading after its fiscal Q2 results showed another quarter of growth and solid profitability along with steady subscriber additions.
- On a GAAP basis, EPS of ¥38.22 beat an expected ¥34.54. Revenue grew 3.7% to ¥1.14T (about $9.5B) and beat an expected ¥1.127T. EBITDA of ¥378.7B beat an expected ¥368B.
- Revenue by segment (first six months): Telecommunications, ¥1.38T (down 0.8%); Equipment Sales, ¥416.8B (down 5.7%); Other, ¥415.8B (up 23.1%).
- Overall cellular subscriptions were up 6.5%, to 68.5M, of which 23.8B were new billing plans. Of those, 34.5M were LTE subscribers (up 31.6% Y/Y).
- Handsets sold were up 10% to 12.04M, and churn rate was flat at 0.58%.
- Aggregate average revenue per user slipped 1.4% to ¥4,100 (voice ARPU of ¥1,180, down 9.9%, and data ARPU of ¥2,920, up 2.5%).
- Form 6-K
Fri, Oct. 30, 7:23 AM
Fri, Oct. 2, 2:27 PM
- NTT DoCoMo (DCM +0.2%) has a deal with KT Corp. (KT -0.9%) that makes it the first operator in Japan to offer outbound voice-over-LTE roaming.
- The service goes live Oct. 7, and nine smartphones in DoCoMo's new lineup will be compatible, though exact support for the devices remains to be seen.
- "Customers with compatible DoCoMo handsets will be able to make the same high-quality voice and video calls as in Japan using VoLTE to and from Japan, as well as in countries and regions capable of using the service," DoCoMo says.
- DoCoMo customers have placed 10M VoLTE calls using the company's domestic-Japan service since June 2014.
Mon, Sep. 14, 9:29 AM
- Japanese telecoms are slipping after Prime Minister Abe's urging that the industry should consider cutting mobile phone fees to reduce the burden on households.
- NTT DoCoMo ADRs (NYSE:DCM) are off 6% premarket, while No. 2 mobile firm KDDI (OTCPK:KDDIY) is inactive in U.S. trading but closed down 8.6% in Tokyo.
- Nippon Telegraph and Telephone (NYSE:NTT) is down 2.8% in the U.S. premarket after dropping 6.5 in Tokyo. SoftBank (OTCPK:SFTBY), meanwhile, was down 5.5% in Tokyo.
- KDDI had said it would lower fixed rates for voice -- a move that could hurt DoCoMo's profits by up to ¥250B if it matched that, says Mizuho's Kei Takahashi, downgrading DoCoMo to Underperform. “If it elects not to do so, we see an increased risk of subscriber outflow; a simplified calculation suggests the loss of 1 million subscribers would lower profits by at least 50 billion yen.”
Mon, Sep. 14, 9:14 AM
Fri, Sep. 11, 1:23 PM
- NTT DoCoMo (NYSE:DCM) is off 3.3% in U.S. trading after Mizuho downgraded the shares to Underperform.
- Most recently, Barclays had upgraded shares to Overweight last week.
- Shares have lost 11% over the past month after hitting a 52-week high on Aug. 10, but are still up 36% YTD.
- In its last earnings report, DoCoMo beat expectations while operational metrics grew across the board. The firm grew subscriptions by more than 6% while churn declined to 0.59%.
Wed, Jul. 29, 12:24 PM
- NTT DoCoMo ADRs (NYSE:DCM) are up 5.5% in U.S. trading after the Japanese mobile firm beat earnings expectations and grew subscribers, smartphone penetration and high-speed data in its Q2 report.
- On a GAAP basis, its EPS of ¥43.48 beat an expected ¥32.30. Revenue was flat and EBITDA of ¥380.97B was 8% better than an expected ¥352.85B.
- Revenue by segment: Telecommunications, ¥878.6B (down 3.1%); Smart Life business, ¥117.1B (up 17.5%); Other, ¥87.1B (up 14.7%).
- Overall, cellular subscriptions rose more than 6%, to 67.5M. The company said at quarter's end it had 32.6M LTE subscribers, up 35.6% Y/Y. Premium 4G service (LTE-Advanced) is now available in 292 cities in Japan.
- Handsets sold rose 11.8%, to 5.77M units. Churn rate was 0.59%, down from the prior year's 0.6%.
- Aggregate average revenue per user was ¥4,010 (down 4.8%). As part of that, Voice ARPU was down 16.4% to ¥1,120; Data ARPU was up 0.7% to ¥2,890; and Packet ARPU was flat at ¥2,870.
- Form 6-K
Wed, Jul. 29, 8:11 AM
Tue, Jul. 7, 3:58 PM
- GE (GE +0.6%) and NTT DoCoMo (DCM +0.1%) plan to team up to offer a new remote monitoring service for bridges and other structures in Japan, Nikkei Asian Review reports.
- The pair reportedly will offer Internet-based solutions to monitor the country's aging structures, which also includes roads, power transmission and other equipment.
- GE sensors would monitor such items as rotation, vibration, flow rates and temperature, transmitting the information via DCM's mobile network; the info would be analyzed to predict equipment trouble and notify clients of potential problems in advance to help save on maintenance costs.
Tue, Apr. 28, 5:04 AM
- NTT DoCoMo (NYSE:DCM): FY14 net income of ¥410.1B
- Revenue of ¥4.38T (-1.8% Y/Y)
- The company declared dividend of ¥65/share.
- The company expects operating revenues of ¥4.51T, net income of ¥470B, Adj. FCF of ¥400B for FY15.
- The company expects net adds of 3.3M subs, total handsets sold 24.1M units for FY15.
- The company plans to hike its annual dividend by 7.7% to ¥70.
- Press Release
Tue, Mar. 3, 7:06 PM
- With Mobile World Congress focusing lots of talk on the next generation of wireless radio technology -- 5G -- NTT DoCoMo (NYSE:DCM) is putting itself in the center, working with many firms in the space, in Asia and otherwise, to help define the standards and develop the tech.
- Recently the Japanese company announced a regional consortium with South Korea's KT Corp. (NYSE:KT) and China Mobile (NYSE:CHL). The three will share information to develop custom 5G tech for Asia, in a bid to get ahead of competitors in the U.S. and Europe.
- Today China's Huawei said it was teaming with DoCoMo for tests in both China and Japan. At MWC, Huawei announced plans to invest at least $600M on 5G research over the next three years.
- On Monday, Nokia (NYSE:NOK) said it was working with DoCoMo to develop high-frequency networks for 5G that could offer 2 Gbps speeds by tapping previously unused spectrum.
- DoCoMo is among the more conservative firms on 5G, expecting it to really arrive in 2020 (just in time for the Tokyo Olympics), with 2030 a target for major deployment.
- FCC Chairman Tom Wheeler says of 5G: "It is like going to the Picasso museum here in Barcelona and looking at a picture; I’ll see something different than you see," but agreement is crystallizing around goals: speeds of up to 10 Gbps, vs. 4G's theoretical 300 Mbps; latency of 1 ms, 500 times faster than current; green and sustainable; flexible; and secure.
Thu, Jan. 29, 9:02 AM
Apr. 25, 2014, 12:58 PM
- Japan's NTT DoCoMo (DCM +5.5%) is surging on news it will try to unload its 26% stake in India's Tata Teleservices, following five years of losses plagued by telecom license cancellations in a corruption probe and repeated delays in rolling out high-speed networks.
- Tata may be an attractive asset for a new entrant hoping to crack the Indian market or an existing large player looking to add market share, but some analysts say they are few potential buyers with the cash to strike a deal.
Jan. 3, 2014, 4:30 AM
- Vodafone (VOD) is in reportedly early discussions to acquire Tata Group's 59.45% stake in Tata Teleservices in a deal that would create India's largest telco with 248M subscribers.
- However, Japan's NTT DoCoMo (DCM), which owns just over a quarter Tata Teleservices, has a right of first refusal on the majority holding.
- Should Vodafone prevail, it would look to acquire all of Tata Teleservices, whose market cap is 16.28B rupees ($261M).
- Meanwhile, Vodafone Egypt has been accused of inciting terrorism by incorporating secret messages supporting the Muslim Brotherhood in an advertisement.
- Vodafone has denied the allegations, which Egyptian prosecutors are investigating amid an intensifying crackdown on the Muslim Brotherhood by the military government that deposed it.
- The accusations add another headache for multinationals that operate in Egypt to go with political instability, security worries and economic uncertainty.
Dec. 3, 2013, 5:35 AM
- UBS upgrades Apple (AAPL) to Buy from Neutral, bumps target to $650 from $540
- "While Apple's stock has improved, institutional ownership has not recovered. It peaked at about 73% in April 2012 and has fallen to under 64%. Our sense speaking with investors is that many are now equal or underweight Apple relative to their benchmark, which could result in new money supporting the stock. Apple fits the value description and with potential double-digit EPS growth in F14 could show up again as a growth story."
- "We think one or more of the following could boost the stock in the next year: i) the gross margin should be flat to up with iPad margins stabilizing and warranty accruals less of an incremental; ii) the imminent support of China Mobile (CHL) along with NTT DoCoMo (DCM) could aid the seasonally weak summer quarters; iii) the hire of Angela Ahrendts may provide an inspirational face to the company; and iv) new products should begin to renew faith in innovation, including wearables and iBeacon."
- AAPL +1.1% premarket to $557.26
Sep. 16, 2013, 11:08 AM
- China Unicom (CHU +0.6%) says its iPhone 5S/5C (AAPL -2.6%) reservations have topped 100K since it began taking them last week. Last year, Unicom took 200K+ iPhone 5 reservations in the phone's first two days of availability.
- Meanwhile, China Telecom (CHA +2.5%) has cut its iPhone subsidies. A subscriber signing up for an RMB289/month ($47/month) plan will get an iPhone 5S subsidy of RMB2890, 15% less than the RMB3400 subsidy it provided for the iPhone 5. It's worth noting CHA's ARPU is below $10.
- The Chinese figures come amidst sharp criticism of the 5C's unsubsidized pricing, which starts at $735 in China. For reference, upstart Xiaomi's new Mi3 flagship Android phone (5" 1080p display, 13MP camera) starts at $327 in the Middle Kingdom.
- On the other hand, Japanese carriers are aggressively subsidizing the 5S in the wake of NTT DoCoMo's (DCM +0.7%) iPhone deal. DoCoMo, SoftBank (SFTBF.PK), and KDDI are each providing the 5S for free with 2-year contracts for certain plans.
- Kantar Japan recently estimated 2/3 of DoCoMo subs who have been leaving the carrier ended up buying an iPhone.
- Also: Bernstein thinks Apple could still come out with a cheaper iPhone in the form of a sub-$400 iPhone 4C that puts the iPhone 4's components inside a 5C body.
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