New Street Research - NTT DoCoMo Inc. (9437) ... Japanese Telcos Q3 FY24 review: Diverging expectations; NTT still preferred

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New Street Research

Chris Hoare

EUR 9194.00 For Business Accounts Only

Japanese Telcos Q3 FY24 review: Diverging expectations; NTT still preferred

Aggregate service revenue trended better on higher contribution from non-mobile, coupled with mobile improvement. Industry mobile was primarily driven by Softbank’s outperformance. Q3 EBITDA dropped on higher mobile marketing costs at NTT which the company seeks to offset through cost efficiencies. DOCOMO is the clear mobile underperformer, but we believe expectations for Fixed recovery is still low, plus there is IOWN optionality. NTT remains our preferred pick.

19/02/2025 1 EN

Underlyings

NTT DoCoMo Inc.

NTT DOCOMO is a mobile telecommunications carrier. Co. has three operating segments. The telecommunications segment includes mobile phone services (LTE(Xi) services and FOMA services), optical-fiber broadband service, satellite mobile communications services, international services and the equipment sales related to these services. The smart life segment includes video and music distribution, electronic books and other services offered through DOCOMO's "dmarket" portal, as well as finance/payment services, shopping services and various other services. The others segment primarily includes "Mobile Device Protection Service," as well as development, sales and maintenance of IT systems.

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JP3165650007 Japan

SoftBank Corp.

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JP3732000009 Japan

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Analysts

Chris Hoare

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Japanese Telcos Q3 FY24 review: Diverging expectations; NTT still preferred

Softbank Corp (Buy, ¥270, +35%) Q3 FY24 Quick Take: Widening mobile gap

Stargate: Big thinking on the future of AI Infrastructure.

Micron: Thesis playing out. Buy, $145 TP.

FCC Accelerates Copper Retirement

GTC 2025 – Making sense of the AI bull case.

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