NTT DoCoMo Inc. forecast Friday that its profit will rise 2.4 percent this business year, falling short of analysts' estimates, because a discount-calling plan will cut into sales.
Net income for Japan's largest mobile phone operator is expected to increase to ¥503 billion in the 12 months that started April 1, from ¥491.2 billion a year earlier, the company said. The median estimates of 17 analysts compiled by Bloomberg was for ¥529.9 billion.
DoCoMo expects operating profit, or sales minus the cost of goods sold and administrative expenses, to rise 2.7 percent to ¥830 billion this year, missing the analysts' estimate of ¥877 billion. Sales are to increase 1.2 percent to ¥4.77 trillion, compared with ¥4.64 trillion expected by the analysts.
Discount-calling plans have failed to help the carrier, which has about 50 percent of the mobile phone market, win more users than KDDI Corp. and Softbank Corp.
DoCoMo announced this month a plan to spend about ¥10 billion to promote a new corporate logo as it seeks to stem its decline in market share.