Japan’s largest operator NTT Docomo saw the continued recovery of its telecoms business, with operating income growing 23 per cent for its full fiscal year 2015 despite a modest increase in service revenue.

The operator, with a 37 per cent market share, reported a 34 per cent jump in its net profit for its fiscal year ending 31 March to JPY548 billion ($497 million), while overall operating revenue for the year rose 3.3 per cent to JPY4.53 trillion. Operating income expanded to JPY783 billion.

Telecoms service revenue for the fiscal year increased 2.5 per cent to JPY2.82 trillion, which the operator credited to high demand for tablets and other products purchased as a second mobile device, the migration to higher-end plans and the growth of subscriptions of its ‘Hikari’ optical-fiber broadband service, which hit 1.57 million.

Mobile service turnover was up 1.1 per cent to JPY2.77 billion, with voice revenue declining 4.9 per cent to JPY849 billion. Revenue for its ‘smart life’ business, which includes content services and an online marketplace, increased 13.7 per cent to JPY504 billion.

Operating expenses from its telecoms business were down 1.2 per cent to JPY2.9 trillion, due mainly to decreases in selling expenses and network-related costs as a result of cost efficiency improvements, despite an increase in costs associated with increased revenues in smart life business and other businesses.

Overall operating expenses fell slightly to JPY3.74 trillion. Capex was also down 10 per cent to JPY595 billion.

Its mobile subscriber base increased 6.6 per cent to more than 71 million. Aggregate ARPU edged up 1.7 per cent to JPY4,170 ($38.84), while data ARPU increased 5 per cent to JPY2,960.

Handset sales grew 9.7 per cent during the year to just over 26 million.

Docomo’s FY2016 guidance targets a 16 per cent jump in operating income to JPY910 billion, with its smart life business contributing JPY120 billion. Operating revenue is estimated to rise two per cent to JPY4.62 trillion. It forecasts capex dropping slightly to JPY585 billion over the next two fiscal years.