The less bumpy way to ride e-commerce = Rakuten

Rakuten Group, Inc. ist ein weltweit führendes Unternehmen, das Menschen durch Technologie und Innovation empowert. Die Philosophie hinter dem japanischen Wort “Rakuten” bedeutet “Optimismus”. Sie drückt das Engagement des Unternehmens für eine bessere, optimistischere Zukunft aus, indem es Einzelpersonen, Unternehmen und der Gesellschaft die Möglichkeit gibt, ihre Träume zu verwirklichen. Rakuten umfasst mehr als 70 Unternehmen und hat über 1,8 Milliarden Mitglieder weltweit. Das Service-Ökosystem basiert auf Mitgliedschaften und bietet eine vielseitige Palette von Dienstleistungen. Dazu gehören E-Commerce, digitale Inhalte, Werbung, Unterhaltung und Kommunikation. Der Hauptsitz von Rakuten befindet sich im Crimson House in Tokyo, Japan. Der Gründer und CEO, Hiroshi Mikitani, leitet das globale, innovative Unternehmen, das sich darauf konzentriert, Träume zu erfüllen und Werte durch Innovation und Unternehmertum zu schaffen.

Internet Services
In domestic e-commerce services, the mainstay of Internet services, the growth rate of total transaction value slowed down compared to the three months ended March 31, 2023, due to the impact of changes in marketing strategies aimed at improving profitability. However, operating profit increased. In the internet shopping mall "Rakuten Ichiba" and the travel reservation service "Rakuten Travel", customer retention continued due to various measures aimed at improving customer convenience and satisfaction.

In other Internet Services including overseas internet services, strong sales growth continued in the US cashback service "Rakuten Rewards", in the mobile messaging and VoIP services "Viber", the e-book service "Kobo", and the video streaming service "Viki" within the overseas content business, the number of users increased, resulting in steady performance improvement and contributing to the expansion of segment profit.

As a result, revenue for the Internet Services segment rose to ¥285,703 million, a 5.4% year-on-year increase, while segment profit stood at ¥13,600 million, a 14.8% year-on-year increase.

(Millions of Yen)
Three months ended March 31, 2023 Three months ended March 31, 2024
Amount Change YoY % Change YoY
Segment revenue 271,138 285,703 14,565 5.4%
Segment profit 11,851 13,600 1,749 14.8%

https://global.rakuten.com/corp/investors/
Latest IR Materials
First Quarter 2024

AT&T, AST SpaceMobile draw closer to sat-to-phone launch

MAY 16, 2024

US operator AT&T struck a deal with AST SpaceMobile to provide what they claim will be the first full space-based broadband service direct to common mobile phones, although a launch date was not specified.

The six-year agreement replaces the pair’s previous memorandum of understanding (MoU) signed in 2020.

AT&T is also a strategic investor in the direct-to-device satellite player (a “$20 million revenue commitment”, according to an AST SpaceMobile investor presentation last month) alongside Google and Vodafone Group. The trio have invested a total of $110 million of ten-year subordinated convertible notes.

In addition to AT&T, AST SpaceMobile is collaborating with Rakuten Mobile, Rogers Communications, Orange, Vodafone and American Tower to address internet connectivity gaps, but the US operator is the only commercial agreement to date.

https://www.mobileworldlive.com/att/att-ast-spacemobile-draw…

www.alphaspread.com/security/tse/4755/earnings-calls/q1-2024

The total number of MNO subscriptions (both individual and business) saw acceleration, reaching 6.8 million as of May 13, 2024.

https://rakuten.today/blog/q1-fy2024-results.html

That are against the 6.32 million at the end of Q1/2024 a strong increase of 0.48 million in only six weeks. If this pace will continue in the next 30 weeks – and I am sure after the excellent quality reports of the last weeks – Rakuten Mobile will add additional 2.4 million subscribers to the 6.8 million as of May 13, 2024 = 9.2 million subscribers at the end of 2024.

Revenue Growth: The group recorded year-on-year revenue growth in all three segments: Internet Services, FinTech, and Mobile. Consolidated revenue reached 513.6 billion yen, a record high for the first quarter, up 8.0% compared to the previous year.

Operating Losses Improvement: Non-GAAP operating losses in Q1 FY2024 were 25.4 billion yen, a significant improvement of 43.5 billion yen YoY. This improvement was due to increased revenue, better profitability in domestic e-commerce growth investment businesses, strong performance in various FinTech businesses, and reduced losses at Rakuten Mobile.

Cash Flow: The consolidated EBITDA (an indicator used to assess cash flow generation) for the quarter was profitable, recording 52.8 billion yen, an increase of 49.3 billion yen YoY.

Consolidated Non-GAAP OI +JPY 43.5bn YoY

On track to achieve annual profitability

Internet Services: significant profit improvement in growth investment businesses and overseas businesses

Rakuten Card: profitability improved
Rakuten Payment: turned profitable
Rakuten Securities: profit back to pre-zero commission level

Rakuten Mobile: continued loss reduction thanks to revenue growth and cost optimization

https://global.rakuten.com/corp/investors/
Latest IR Materials
First Quarter 2024

Consolidated revenue: JPY 513.6bn Record high for Q1

Internet Services: Rakuten Ichiba and Rakuten Travel plus overseas businesses performed well

FinTech: Growth in all services from expansion of customer base and transaction value

Mobile: Growth in Rakuten Mobile subscribers boosted MNO service revenue by JPY 9.6bn YoY

global.rakuten.com/corp/investors/
Latest IR Materials
First Quarter 2024

Refinance risk for 2024 has already been resolved. In addition, by issuing US dollar-denominated senior bonds and JPY-denominated private placement notes in April 2024, the liquidity gap for corporate bonds that mature in 2025 has largely been addressed

Continued efforts to increase intra-group cash flow, including optimization of working capital, and reduce interest bearing debt through various capital procurement activities

https://global.rakuten.com/corp/investors/
Latest IR Materials
First Quarter 2024

MAY 14, 2024

On its Q1 earnings call, Mikitani claimed “smooth progress” in turning around the group’s loss-making mobile unit, noting profitability is just around the corner, with a target of EBITDA turning positive by December 2024.

He noted it is now in the third phase of its launch, which is telling customers about its improved network quality. It is working to a target of 10 million subscribers by end-2025.

The operator’s revenue grew 7.1 per cent year-on-year to JPY62 billion ($396.3 million), with mobile service sales expanding 36 per cent to JPY36.1 billion. Its operating loss was JPY66 billion compared to JPY92 billion a year earlier.

Rakuten Symphony’s revenue jumped 55.3 per cent to $118 million.

In early April the operator said it added 1.5 million subscribers within a year, taking its total to 6.5 million at end-March.

Capex in the first quarter dropped 47 per cent to JPY33 billion from a year earlier.

The operator is targeting commercial launch of service on the 700MHz band in June, which will help take population coverage to 99.9 per cent.

https://www.mobileworldlive.com/rakuten/rakuten-mobile-chief…