TOKYO—NTT DoCoMo, the largest mobile carrier in Japan, is going to report about a 300 billion yen (US$2.5 billion) special loss in its first half (1H) of fiscal year (FY) 2001 from April to September due to the re-evaluation of its stake in KPN Mobile, Jiji Press reported on 2 November. NTT DoCoMo is scheduled to announce its financial results for 1H FY 2001 on 7 November.
NTT DoCoMo last August acquired a 15-percent stake in the Netherlands’ KPN Mobile, a mobile business unit of KPN Group, for about 407.3 billion yen (US$3.4 billion). However, due to the burst of the so-called information technology bubble, KPN’s business achievement has been deteriorating. According to Jiji Press, NTT DoCoMo decided to report the special loss in 1H FY 2001 because KPN’s stock prices had significantly dropped, leaving DoCoMo with little other choice.
NTT DoCoMo also acquired a 16-percent stake in U.S.-based AT&T Wireless, the mobile business unit of AT&T, last year. Although the stock price of AT&T Wireless has also dropped significantly since the acquisition, NTT DoCoMo decided not to report any special loss from the stock price deterioration, because the drop did not reach the requirement for the financial accounting standard, Jiji Press said.
