TOKYO-Japanese telecommunications giant NTT DoCoMo Inc. posted a $85.2 million loss for its fourth fiscal quarter 2004 ended March 31, which was a significant drop from the $1.5 billion profit the company posted during the fourth quarter of 2003. The company noted the loss was due to a $572 million charge it took after deciding to stop adding customers to its legacy personal handyphone service in favor of its next-generation FOMA network.
Fourth-quarter revenues also slipped from $11.6 billion in 2003 to $11.4 billion in 2004. The drop was attributed to increased pricing competition that impacted average revenue per user results from $74.72 during the fourth quarter of 2003 to $68.19 in 2004.
Full-year revenues also dropped 4 percent from $47.8 billion in 2003 to $45.8 billion in 2004. The decline was the company’s fist year-over-year revenue shortfall in its 13-year history.
Despite the fourth-quarter and full-year revenue difficulties, full-year profits jumped 15 percent from $6.2 billion in 2003 to $7.1 billion in 2004. The results were boosted by NTT DoCoMo selling its 16-percent stake in U.S. operator AT&T Wireless Services Inc. last October following AWS’ acquisition by Cingular Wireless L.L.C.
