NTT Docomo increased marketing outlay in fiscal Q1 2024 (calendar Q2) to target younger customers, a segment where it has traditionally been weak, with much of the spending allocated to discounts on handsets.
CFO Keita Kobayashi said on an earnings call the company is on track and monitoring competitors’ products to determine how it invests to boost net additions.
He acknowledged Docomo previously “focused so much on profit and really reduced our marketing expenses”.
Kobayashi does not expect mobile tariffs to start rising anytime soon, as its packages are generally priced higher than the competition, but asked if Docomo “can we allow the competition to chip away” at its customer base.
The operator’s smart services, covering payments and a range of digital services, was the sole driver of growth in the quarter.
Mobile service revenue fell 2.4 per cent year-on-year to JPY620.9 billion ($4.2 billion), with ARPU flat at JPY3,910.
The operator added 9.2 million 5G subscribers to end June with 31.6 million.
Total mobile subscribers rose 2.5 per cent to 90.1 million.
Enterprise revenue declined 1.7 per cent to JPY430.3 billion, Smart Life rose 12.3 per cent to JPY288.6 billion, and Equipment 6.1 per cent to JPY162.6 billion.
Net profit dropped 5.1 per cent to JPY194.9 billion, with operating revenue flat at JPY1.5 trillion.
Capex was steady at JPY120 billion.
The post Docomo boosts marketing spend to target youth segment appeared first on Mobile World Live.
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