Business

NTT Docomo, KDDI log lower profits in April-June

JIJI

Major mobile phone carriers NTT Docomo Inc. and KDDI Corp. saw their consolidated net profits drop in April-June while rival SoftBank Corp.’s net profit rose in the fiscal first quarter.

Docomo’s net profit fell 11.9 percent from a year before to ¥192.3 billion, squeezed by its discount pricing plans, including a new offer introduced in June that lowered telecommunications charges by up to 40 percent.

KDDI’s net profit dropped 9.0 percent to ¥162.55 billion. The company was hampered by increased sales promotion expenses as it tried to entice customers into switching from flip phones to smartphones ahead of Rakuten Inc.’s launch of its mobile phone service in October.

SoftBank’s net profit grew 2.1 percent to ¥164.8 billion thanks to the strength of smartphone, fiber optic and other services to individual customers.