TOKYO, JAPAN, May 12, 2005 --- NTT DoCoMo, Inc. announced today that it will complete the sale of its 20% stake in Hutchison 3G UK Holdings Limited ("H3G UK") to Hutchison Whampoa Limited ("HWL") on June 23, 2005.
DoCoMo will record a gain on sale of affiliate shares of approximately 62 billion yen on a consolidated basis in the fiscal year ending March 31, 2006 including foreign currency translation adjustment and as a result, will amend its consolidated financial forecasts, which were announced on May 10, 2005.
The non-consolidated financial forecast remains unchanged.
DoCoMo and HWL signed a Sale and Purchase Agreement on May 27, 2004 under which DoCoMo was to sell its entire stake in
For the amended forecasts for the fiscal year ending March 31, 2006, please refer to the attachment.
Attachment
Amended Consolidated Financial Results Forecasts
for Fiscal Year Ending March 31, 2006
| Operating Revenues | Operating Income | Income before Income Taxes | Net Income | Free Cash Flows* | |
| Previous Forecast (A) | 4,805,000 | 810,000 | 812,000 | 497,000 | 590,000 |
| Amended Forecast (B) | 4,805,000 | 810,000 | 874,000 | 533,000 | 614,000 |
| Increase/ (Decrease) (B-A) | - | - | 62,000 | 36,000 | 24,000 |
| Change (%) | - | - | 7.6% | 7.2% | 4.1% |
| Results for the Fiscal Year Ended March 31, 2005 | 4,844,610 | 784,166 | 1,288,221 | 747,564 | 1,003,600 |
* Free cash flows do not include the changes in investments for cash management purpose.
About NTT DoCoMo
NTT DoCoMo is listed on the Tokyo (9437), London (NDCM), and New York (DCM) stock exchanges. For more information, visit www.docomo.ne.jp/english.
i-mode and FOMA are trademarks or registered trademarks of
NTT DoCoMo's FOMA service is only available to subscribers in Japan.
Special Note Regarding Forward-Looking Statements
This release contains forward-looking statements such as forecasts of results of operations, management strategies, objectives and plans, forecasts of operational data such as expected number of subscribers, and expected dividend payments. All forward-looking statements that are not historical facts are based on management's current plans, expectations, assumptions and estimates based on the information currently available. Some of the projected numbers in this report were derived using certain assumptions that are indispensable for making such projections in addition to historical facts. These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from those contained in or suggested by any forward-looking statement. Potential risks and uncertainties include, without limitation, the following:
- Competition from other cellular service providers or other technologies could limit our acquisition of new subscribers, retention of existing subscribers and average revenue per unit (ARPU), or may lead to an increase in our costs and expenses.
- The new services and usage patterns introduced by our corporate group may not develop as planned, which could limit our growth.
- The introduction or change of various laws or regulations or the application of such laws and regulations to our corporate group may adversely affect our financial condition and results of operations.
- The introduction of number portability in Japan may increase our expenses, and may lead to a decrease in our number of subscribers if our subscribers choose to switch to other cellular service providers.
- Limitations in the amount of frequency spectrum or facilities made available to us could negatively affect our ability to maintain and improve our service quality and level of customer satisfaction.
- The W-CDMA technology that we use for our 3G system and/or mobile multimedia services may not be introduced by other overseas operators, which could limit our ability to offer international services to our subscribers.
- Our domestic and international investments, alliances and collaborations may not produce the returns or provide the opportunities we expect.
- Our PHS business, which is expected to operate at a loss until the service is terminated, may incur greater losses than we project.
- As electronic payment capability and many other new features are built into our cellular phones, and services of parties other than those belonging to our corporate group are provided through our cellular handsets, potential problems resulting from malfunctions, defects, or missing of handsets or imperfection of services provided by such other parties may arise, which could have an adverse effect on our financial condition and results of operations.
- Social problems that could be caused by misuse or misunderstanding of our products and services may adversely affect our credibility or corporate image.
- Inadequate handling of subscriber information by our corporate group or contractors may adversely affect our credibility or corporate image.
- Earthquakes, power shortages, malfunctioning of equipment, and software bugs, computer viruses, cyber attacks and other problems could cause systems failures in our networks, handsets or other networks required for the provision of service, disrupting our ability to offer services to our subscribers.
- Concerns about wireless telecommunications health risks may adversely affect our financial condition and results of operations.
- Our parent company, Nippon Telegraph and Telephone Corporation (NTT), could exercise influence that may not be in the interests of our other shareholders.
