NTT Docomo, the largest mobile operator in Japan, turned in a strong performance in its fiscal Q1 (calendar Q2), with a surge in net profit driven by stable growth across all business segments, rising ARPU and mobile subscribers.

The operator’s net profit climbed 9.2 per cent year-on-year to JPY218 billion ($1.9 billion), while operating revenue rose 3.8 per cent to JPY1.18 trillion. Service revenue increased 3 per cent to JPY785 billion, with mobile turnover flat at JPY718 billion. Equipment sales jumped 13.7 per cent to JPY179 billion.

Its Smart Life business, which covers content, e-commerce and payments, was also flat at JPY110 billion, but operating margin rose from 15 per cent to 17.5 per cent, boosting operating profit 16 per cent.

The company’s LTE user base grew by 5.6 million year-on-year to end the June quarter at 51.3 million. Total mobile subscribers increased 2 per cent year-on-year to 76.8 million.

Aggregate ARPU increased 3.9 per cent to JPY4,800 per month.

Docomo added about 24,000 LTE base stations since end-June 2017, taking the total to more than 114,000.

Capex in the quarter was up 2 per cent year-on-year to JPY125 billion, with the full year budget forecast to remain stable at JPY570 billion.