NTT DoCoMo has suffered a 20% drop in Q2 net profit to 138 billion yen ($1.51 billion) due as voice revenue and handset sales both fell away.
Operating profit dropped by 15.9% to 485.22 billion yen due to a decline in sales, overall revenue dropped by 5.4% to 2.15 trillion yen.
DoCoMo expects revenue to slip further in the current year and revised its sales forecast for the full year to March down to 4.28 trillion yen from 4.38 trillion yen in the previous forecast.
The carrier also cut its handset sales forecasts for the current fiscal year to 18.2 million phones from its prior forecast of 19.7 million. In the last fiscal year, DoCoMo sold 20.13 million handsets.
In line with the Japanese mobile sector, revenue from phone calls in the quarter dropped 5.5% to 884.3 billion yen from 935.5 billion yen a year earlier.
The carrier is banking on growth in its data services to eventually make up for the shrinking call revenue.
“We are focusing on boosting our data communication revenue. The shift to data services is a global trend, and Japan is a step ahead of it,” said president Ryuji Yamada.