Japan's top mobile carrier reports nearly 15 per cent profit growth

TOKYO (AP) - Japan's largest mobile phone service operator, NTT DoCoMo Inc., said its profit rose 14.9 per cent in the half-year through September, due to continued cost-cutting efforts and a lower churn rate. Group net income totalled 385.3 billion yen ($3.35 billion US) in the six months ended Sept. 30, up from 335.2 billion yen during the same period of last year, NTT DoCoMo said in a statement.

The Tokyo-based company said its group revenue fell 3.2 per cent during the six-month period to 2.37 trillion yen ($20.64 billion), but its operating profit grew 16.1 per cent to 633.1 billion yen ($5.51 billion), NTT DoCoMo said.

The company did not break down earnings into quarterly figures.

NTT DoCoMo's offer of discount packages resulted in a decline in average revenue per user, but the introduction of a broader range of mobile phone handset lineups led to an increase in the number of new subscribers and helped lower the company's churn rate - the rate at which customers switch to other providers.

NTT DoCoMo shares remained unchanged at 198,000 yen ($1,722) on the Tokyo Stock Exchange shortly before earnings were released.

© The Canadian Press, 2005