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Japan-Update

Docomo's profit growth seen slowing to a crawl

Promotional costs to weigh on Japanese telecom's earnings

TOKYO -- NTT Docomo's group operating profit is seen edging up only to around 950 billion yen ($8.63 billion) in the year ending March 2018 as the Japanese wireless carrier spends more on incentives to compete against low-cost rivals.

That would mark a sharp slowdown from the 20% profit growth that Docomo is expected to report for the just-ended fiscal year. Promotional costs include loyalty points, which the carrier uses to try to keep subscribers from jumping ship.

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