Stephen Simpson, CFA
Today, 1:14 PM
- NTT DoCoMo (NYSE:DCM) has gained 3% in U.S. trading after its fiscal Q1 showed a profit of $1.9B.
- Revenues of ¥1.11T missed expectations by about 1.3%, but EPS of ¥55.10 beat an expected ¥53.98.
- Sales breakout: Telecommunications services, ¥729.7B (up 8.1%); Equipment sales, ¥165.8B (down 17.6%). Of telecom services, mobile voice revenues came to ¥215.9B (up 9.8%); mobile packet communications revenues were ¥488.3B (up 3.3%).
- Operating income came to ¥299.3B, up 27% Y/Y.
- Capex was ¥97.1B, up 4.3%.
- Press Release
Mon, Feb. 1, 12:41 PM
- NTT DoCoMo (NYSE:DCM) is up 5.3% in U.S. trading after Friday's earnings included not only a strong beat on profits, but also plans for up to $4.1B in buybacks.
- Shares closed up 14.2% in Tokyo, its biggest jump in almost 16 years, in its first trading day since announcing the results.
- Nomura bumped its price target to ¥3,030, from ¥2,860 -- implying 20% upside from Friday's close, and another 5% upside yet from today's close -- in part due to "generous shareholder returns."
- The firm strongly reaffirmed its Buy rating and says it's their sole second pick behind NTT in investment preference. It raised its valuation multiple to 7.5 times forward EBITDA, from a previous 7.25 times.
- “The company has strong subscriber numbers, rising ARPU, an improved churn rate and reduced capex,” wrote Credit Suisse's Hitoshi Hayakawa. “We expect NTT DoCoMo shares to continue gaining for the time being.”
- Previously: DoCoMo +3.2% on strong profit beat, repurchase of up to $4.1B (Jan. 29 2016)
Fri, Jan. 29, 9:27 AM
- NTT DoCoMo (NYSE:DCM) is up 3.2% premarket in U.S. trading after posting fiscal Q3 results where it beat expectations easily, said it would beat full-year forecasts and pursued a buyback of up to $4.1B in shares.
- Net income of ¥175.3B easily beat expectations for ¥126.5B, while revenues of ¥1.17T were in line. The company had realigned its three former segments (mobile communications, smart life, other) into three slightly newer segments after the launch of its fiber broadband.
- It's going to buy back up to 220M shares (some 5.7% of non-treasury stock outstanding) this year -- up to a maximum of ¥500B.
- DoCoMo reiterated its guidance for full-year income of ¥490B and revenues of ¥4.49T.
Oct. 30, 2015, 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
Sep. 14, 2015, 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.”
Sep. 14, 2015, 9:14 AM
Sep. 11, 2015, 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%.
Jul. 29, 2015, 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
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.
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.
Oct. 26, 2012, 12:49 PM
Apple (AAPL -2.6%) is now seeing a decent post-earnings selloff. Aside from the margin issues, the Street is likely concerned about Apple's relatively soft European and Asia-Pac performance. Europe and China's macro problems are one reason, but in light of Samsung's Q3 smartphone sales and recent market share data (I, II), Android competition could be another. U.S. and Japanese sales grew much faster thanks to iPhone share gains - could the Japanese gains finally lead to a deal with NTT DoCoMo? (more) (transcript)| Oct. 26, 2012, 12:49 PM | 45 Comments
Aug. 2, 2011, 2:54 PM