DoCoMo Gets a Clearer Signal

A year ago, NTT DoCoMo looked like yet another Japanese company gone astray. A year ago, NTT DoCoMo looked like yet another Japanese company gone astray. After writing off half of the $16 billion it had invested in overseas phone companies, Japan’s No. 1 wireless operator plunged into the red for the first time since its founding in 1991. Its reputation as a leader in innovation took a beating after it was late to offer cell phones with built-in cameras, the latest rage in Japan. And the launch of its much-hyped 3G high-speed mobile service turned out to be a much-publicized flop.

Now, though, DoCoMo is bouncing back. Although the company won’t report fiscal 2002 earnings until mid-May, Credit Suisse First Boston Corp. sees a $1.7 billion profit, on sales of $40 billion, vs. a $985 million loss on revenues of $39.5 billion in 2001. Moreover, thanks to booming handset sales, declining capital outlays, and higher mobile revenues, DoCoMo is cash-rich again; it rang up $3 billion in free cash flow for the year ending Mar. 31, analysts say. CONTINUE

COMMENTARY: Good news - finally - for Big D. We told you so.
See: Tokyo Analyst: 2003 Wireless Outlook