Rakuten Reports Revenue Growth Amidst Strategic Improvements

Rakuten ( (RKUNF) ) has released its Q3 earnings. Here is a breakdown of the information Rakuten presented to its investors.

Rakuten Group, Inc. is a Japanese multinational company listed on the Tokyo Stock Exchange, primarily engaged in internet services, e-commerce, and financial technology, known for its ecosystem integrating diverse services including mobile networks.

In its latest earnings report for the nine months ending September 30, 2024, Rakuten reported a revenue increase of 8.5% year-on-year, achieving ¥1,617,621 million. Despite a net loss, the company showed significant improvement in its operating losses, reflecting strategic efforts in its core business segments.

Key highlights of the report include a significant reduction in operating losses and a return to positive operating income for the first time in years. The Internet Services segment recorded a 4.3% rise in revenue, driven by growth in domestic services like Rakuten Ichiba and international services such as Rakuten Rewards. The FinTech segment also saw a robust 13.3% increase in revenue, benefiting from expansion in credit card and banking services. Meanwhile, the Mobile segment achieved a 13.5% increase in revenue, reducing its losses significantly through subscriber growth and cost optimization.

Rakuten’s financial position showed an increase in total assets to ¥24,879,684 million, indicating strategic investments in its mobile and financial services sectors. The management remains optimistic about achieving double-digit revenue growth for the full fiscal year, leveraging its diverse portfolio and ecosystem synergies.

Looking forward, Rakuten aims to sustain its growth trajectory by enhancing its service offerings, expanding its customer base, and optimizing operational efficiencies across its segments, despite the challenging economic environment.