NTT DoCoMo to post $2.5B loss on KPN
NTT DoCoMo Inc., Japan's leading cellular telecommunications carrier, is set to post a 300 billion yen (US$2.5 billion) special loss for the first half of its financial year, which ended Sept. 30, to account for the fall in value of its investment in KPN Mobile NV, according to a report in the Financial Times.
The losses stem from the steep fall in KPN's share price since DoCoMo took a 15 percent stake in the company in May 2000. At that time it paid 4.5 billion euros (US$4.1 billion) for the stake. KPN's share price, however, has slipped by around 90 percent since the investment was made.
The company, which is due to announce its first half earnings on Wednesday, could not immediately be contacted for comment.
The report comes two weeks after the Nihon Keizai Shimbun, Japan's leading business daily, said DoCoMo is looking at posting a 400 billion yen write-off on the investment.
NTT DoCoMo is based in Tokyo and can be contacted at +81-3-5563-7015 or found online at http://www.nttdocomo.co.jp/.