Financial Data and Key Metrics Changes - The consolidated revenue for the fourth quarter increased by 3.3%, achieving JPY 2.07 trillion, marking 27 consecutive months of positive growth [15][17] - Non-GAAP EBITDA for the fourth quarter was JPY 74.5 billion, showing significant improvement year-on-year [16][17] - Non-GAAP operating profit for the fourth quarter was reported at minus JPY 3.6 billion, an improvement of JPY 69 billion compared to the same quarter last year [16][20] Business Line Data and Key Metrics Changes - Internet services segment revenue increased by 5.9% year-on-year, while FinTech grew by 10.4%, and Rakuten Mobile saw a 12.6% increase [15] - Non-GAAP operating income for the Internet services segment grew by 18.9% year-on-year, reaching JPY 76.8 billion [25] - Rakuten Mobile's revenue was JPY 364.6 billion, a 3.9% increase year-on-year, but the non-GAAP operating income was still negative at JPY 337.5 billion for the year [43] Market Data and Key Metrics Changes - The domestic e-commerce market showed a three-year CAGR improvement of 10%, with Rakuten Ichiba outperforming the industry average by achieving an 8.1% CAGR [24] - Rakuten Bank reported a year-on-year revenue growth of 9.8%, reaching JPY 1.2 trillion [25] - The ad business revenue grew at 17%, significantly higher than the industry average of 2% [32] Company Strategy and Development Direction - The company aims to leverage AI to enhance productivity, targeting a 20% increase in marketing and operational productivity [22] - The introduction of the SAIKYO Family program is expected to enhance user acquisition and retention, despite potential short-term impacts on ARPU [4][49] - The company is focusing on capitalizing on its ecosystem, integrating various services to drive growth [27][58] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving profitability in the mobile segment throughout the year, emphasizing cash management and operational efficiency [21][68] - The company acknowledged challenges in revenue growth but highlighted ongoing improvements in service quality and marketing strategies [90] - Management is cautious about regulatory changes affecting the telecommunications industry, particularly concerning the NTT law [65] Other Important Information - The company has successfully reduced monthly operational costs by JPY 16 billion, with plans for further reductions [61][107] - The introduction of new financial products in conjunction with mobile services is being considered to enhance customer offerings [110] Q&A Session Summary Question: What is the roadmap to increase mobile ARPU to JPY 2,500 - JPY 3,000? - Management indicated that additional services will be offered to enhance ARPU, with expectations for ad revenue growth contributing to this target [88][89] Question: What is the impact of the family program on ARPU and user growth? - Management noted that while the family program may initially lower ARPU, it is expected to drive user acquisition and retention, ultimately benefiting overall revenue [93][94] Question: Will the company continue to pursue cost reductions? - Management confirmed that the current cost reduction standard will be maintained, with further initiatives underway to achieve additional savings [107]

Financial Performance & Targets - Rakuten Group achieved 27 consecutive years of revenue growth, surpassing JPY 2 trillion in consolidated revenue for FY23[78] - The company aims for annual consolidated Non-GAAP Operating Income profitability in FY2024[90] - Rakuten Mobile is targeting monthly Non-GAAP EBITDA profitability by December 2024[91] and annual EBITDA breakeven for FY2025[165] - Rakuten Mobile aims to grow MNO Service Revenue to cover EBITDA cost[212] Rakuten Mobile Strategy - Rakuten Mobile is targeting 8 to 10 million subscribers[195] - Rakuten Mobile is aiming for an ARPU (Average Revenue Per User) between JPY 2,500 and JPY 3,000[195] - Rakuten Mobile's network quality has shown consistent improvement, reducing churn rate[70] - Rakuten Mobile is introducing the SAIKYO Family Program, offering competitive pricing for families, with data plans starting at JPY 980 (JPY1,078, incl tax) for up to 3GB when family discounts are applied[57, 230] AI Initiatives - Rakuten is implementing an "AI-nization" plan to enhance operating productivity and uplift clients' productivity[37, 92] - Semantic search for Rakuten Fashion reduced zero hit rate by 93.5% and increased searches per session by 3%[24] - Semantic Search for Rakuten Ichiba reduced zero hit rate by 98.5%[315] Financial Strategy - Rakuten raised USD 1.8 billion of USD Denominated Senior Notes in February 2024[14] - The company plans to significantly reduce Capex from FY2024[19], anticipating it to be slightly under JPY 100 billion[266] - Platinum Band-related 10-year expected cumulative capital expenditure of JPY 54.4 billion[266]

NurPhoto/NurPhoto via Getty Images Operating the third biggest ecommerce marketplace in the world with 1.7b members, Rakuten Group (OTCPK:RKUNY) (TSE:4755) is a quiet giant. Practically everyone in Japan, the third most populous country in Asia Pacific with 128m people, is a Rakuten customer. And not just in ecommerce. Its fintech offerings are immensely popular; advertising and digital content also do well for themselves. The biggest reason for the Group's successful expansion has been its membership and l ...

Financial Data and Key Metrics Changes - For Q3 2023, consolidated revenue increased by 10.1% year-on-year, with significant growth in the Internet and FinTech segments [6][9] - Non-GAAP operating income is expected to achieve profitability by December 2023, with consolidated EBITDA showing improved profitability [4][8] - The Internet Service segment saw a revenue growth of 13.9% year-on-year, while non-GAAP operating income grew by 16.2% [9] Business Line Data and Key Metrics Changes - The FinTech segment reported a revenue increase of 13.6% year-on-year, with non-GAAP operating income growth of 35.8% [12][14] - Rakuten Mobile's revenue grew by 21.6%, with a significant improvement in non-GAAP operating income and EBITDA [28] - The domestic e-commerce (EC) sector grew by 15.7%, with advertising sales increasing by 15.3% [10] Market Data and Key Metrics Changes - Rakuten TV users increased by 42.1% year-on-year to 84.4 million, while Rakuten Kobo and Viber also saw growth [11] - The number of Rakuten Bank accounts reached 13.3 million, with a total deposit balance close to ¥10 trillion [16] - The cashless payment market in Japan is growing, with Rakuten Pay ranked number one in customer satisfaction [17][19] Company Strategy and Development Direction - The company aims to leverage its ecosystem to enhance customer engagement and increase revenue through mobile services [40] - A focus on integrating AI into operations, termed "AI-nization," is expected to improve service delivery and customer satisfaction [61][64] - The partnership with Mizuho Securities aims to enhance the FinTech structure and maximize synergies [57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability in the mobile segment and emphasized the importance of network quality improvements [28][78] - The company is optimistic about sustaining subscriber growth and reducing churn rates, which are currently at competitive levels [78] - Future growth is anticipated through enhanced customer engagement and the introduction of new services [90] Other Important Information - The company plans to redeem ¥68 billion in subordinated bonds by December 2023, indicating a proactive approach to managing debt [55][60] - The introduction of zero-commission trades for domestic stocks is expected to enhance customer loyalty and increase account numbers [21][24] Q&A Session Summary Question: What are the factors behind the acceleration in mobile subscriber growth? - Management identified three key factors: reduced churn rate due to improved network quality, the introduction of the SAIKYO plan, and increased B2B contracts [78][81] Question: How effective will the SPU initiative be for gaining more users? - The SPU initiative is expected to attract more users due to its competitive pricing and point rewards system, potentially increasing the subscriber base significantly [90] Question: What are the implications of the NTT law on internet connectivity in Japan? - Management highlighted the potential for improved internet connectivity through deregulation and leveraging existing infrastructure [95] Question: How does the company plan to manage bond redemptions and maintain cash flow? - The company is focused on improving cash flow through mobile business growth and strategic partnerships, ensuring that bond redemptions will not pose a problem [98]

FY2023 Second Quarter Consolidated Financial Results August 10, 2023 Rakuten Group, Inc. Topics | --- | --- | |-------|-------| | | | | 1 | | | 2 | | ◆ Mobile ◆ Internet Services ◆ FinTech 3 Financial Strategy 4 AI Strategy R 2 | --- | --- | --- | |-------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1. CEO Summary | | | | | | | | | | | | | | | | | | | | | | | | | | | | R | | 3 | Annual Revenue Growth for 26 Consecutive Years Since the Founding 1997 2005 201 ...

Rakuten Group, Inc. (OTCPK:RKUNY) Q1 2023 Earnings Conference Call May 12, 2023 2:15 AM ET Company Participants Hiroshi Mikitani - Chairman, President and Chief Executive Officer Tareq Amin - Group Executive Vice President Conference Call Participants Operator [Foreign Language] [Interpreted] Ladies and gentlemen, thank you very much for making yourselves available today. We now would like to start the Rakuten 2023 First Quarter Financial Results Meeting. We have disclosed the latest consolidated financial ...

FY2022 Fourth Quarter and Full Year Consolidated Financial Results CEO Group Strategy February 14, 2023 Rakuten Group, Inc. Topics 1 Summary 2 FY2022 Business Updates ◆ Internet Services ◆ Fintech ◆ Mobile (Strategies towards No. 1 Mobile Carrier in Japan) ◆ Rakuten Symphony | --- | --- | --- | --- | |-------|----------------------|-------|-------| | 3 | Financial Strategy | | | | 4 | ESG | | | | 5 | Financial Highlights | | | R 2 1 Summary R 3 FY2022 Domestic Key KPIs +12.3% JPY 5.6 tn Domestic EC GMS YoY ...

Rakuten Group, Inc. (OTCPK:RKUNY) Q4 2022 Earnings Conference Call February 14, 2023 1:15 AM ET Company Participants Hiroshi Mikitani - Chairman, President and Chief Executive Officer Tareq Amin - Executive Vice President Operator Good afternoon and thank you for joining Rakuten Group’s 2022 Full Year and Fourth Quarter Financial Results Meeting. We have disclosed the latest consolidated financial report at 3:00 p.m. today. You can view this data on our corporate website page for investors, along with the p ...

Rakuten Group, Inc. (OTCPK:RKUNY) Q3 2022 Earnings Conference Call November 10, 2022 1:15 AM ET Company Participants Hiroshi Mikitani - Chairman, President and Chief Executive Officer Tareq Amin - Chief Executive Officer, Rakuten Mobile and Rakuten Symphony Hiroshi Takasawa - Chief Financial Officer Conference Call Participants Yushi Kawamoto - Haitong International Japaninvest KK Nagao Yoshitaka - Bank of America Yusuke Okumura - Okasan Securities Hiroko Sato - Jefferies Securities David Gibson - MST Finan ...

FY2022 Third Quarter Consolidated Financial Results CEO Group Strategy November 11, 2022 Rakuten Group, Inc. Agenda | --- | |--------------------------------------| | Mobile/Rakuten Symphony Strategy | | Q3/22 Highlights | | Business Update | | ◆ Internet Services | | ◆ FinTech | | ◆ Overseas and Contents Businesses | | Financial Strategy | 2 1 Mobile / Rakuten Symphony Strategy 3 � | Mobile Rakuten ද 5 4 O IT ALL BEGAN WITH A VISION 5 Monthly Mobile Subscription Fees in Japan Before Rakuten Mobile Was Laun ...