Financial Data and Key Metrics - Revenue increased by 8% year-on-year to ¥513.6 billion, a record high for the first quarter [92] - Consolidated EBITDA reached ¥52.8 billion, with significant improvements in cash flow [93] - Non-GAAP operating income for the Internet segment increased by 14.8% to ¥13.6 billion [94] - Rakuten Mobile's EBITDA improved dramatically, with a reduction in losses compared to the previous year [102] Business Line Data and Key Metrics - Rakuten Ichiba and Travel showed steady growth in the domestic market, while overseas business also progressed [92] - Rakuten Mobile's subscriber base grew, with M&O service revenue increasing by ¥9.6 billion year-on-year [117] - Rakuten Card profitability improved, and Rakuten Payment turned profitable [117] - Rakuten Symphony's Open RAN strategy gained strong attention globally, with plans to open-source software [31][32] Market Data and Key Metrics - Domestic EC GMS growth rate improved by 1.5 percentage points quarter-on-quarter [95] - Rakuten Travel inbound GTV increased by 243% year-on-year [95] - Rakuten TV overseas saw a 43.8% year-on-year growth in user numbers [95] - Rakuten Mobile achieved 99.9% population coverage, with plans to expand 5G coverage further [130][131] Company Strategy and Industry Competition - The company is focusing on Open RAN and virtualization, aiming to disrupt the mobile industry with its software strategy [31][32] - Rakuten Mobile's success is seen as a test case for its software technology, with plans to showcase its effectiveness globally [52] - The company is leveraging AI to improve operational efficiency and customer support, with a 70% reduction in support fees achieved through AI implementation [111] - Rakuten is integrating its fintech services, including Rakuten Card, Rakuten Pay, and Rakuten Edy, to create synergistic effects [101][126] Management Commentary on Operating Environment and Future Outlook - Management emphasized the importance of quality over volume, particularly in the Domestic EC segment [119] - The company is confident in its ability to compete in the e-commerce market, with a focus on healthy user growth and optimized marketing expenses [28] - Rakuten Mobile is expected to achieve profitability on an annual consolidated non-GAAP OI basis in fiscal 2024 [138] - The company is proactively managing debt maturity and improving its credit rating to ensure financial soundness [139] Other Important Information - Rakuten launched a special "Welcome Home" campaign in May to attract returning customers, which has been well-received [5][6] - The company is reorganizing its fintech businesses to improve governance and synergy effects [71][126] - Rakuten AI 7 billion, a cost-effective open model for the Japanese language, has been launched and is performing comparably to other large language models [64] Q&A Session Summary Question: E-commerce market growth and GMV outlook - The company observed a strengthened customer base but noted a decline in GMV due to price hikes in home appliances [23] - Daily necessities, including food, showed positive growth, with expectations for further growth in Q3 and Q4 [24][26] Question: Rakuten Symphony's revenue growth and Open RAN adoption - Rakuten Symphony's Open RAN strategy is gaining traction globally, with plans to open-source its software to accelerate adoption [31][32] - The company expects significant revenue growth from its software business, particularly in Open RAN and cloud services [37] Question: Mobile business subscriber trends and profitability - Rakuten Mobile's subscriber growth is steady, with improvements in both new subscriptions and churn rates [66] - The company aims to increase ARPU to ¥2,500 and is focusing on high-quality services to enhance customer experience [41][67] Question: AI utilization and service offerings - Rakuten is leveraging AI to improve operational efficiency, customer support, and marketing productivity [111][136] - The company has launched AI-powered tools for merchants and plans to scale its AI applications across multiple services [142][143] Question: Financial restructuring and alliances - The company is reorganizing its fintech businesses to improve governance and synergy effects [71][126] - Rakuten is open to alliances with other entities to enhance its non-financial fintech offerings [72]

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 ...

Financial Data and Key Metrics Changes - The revenue for FinTech and Rakuten Bank and Rakuten Securities increased by 7.6% year-over-year, while operating income (OI) rose by 20.4% [3] Business Line Data and Key Metrics Changes - Internet Services performed well, contributing positively to the overall performance, while other segments faced challenges [2] - Rakuten Mobile showed improvement in loss reduction and revenue growth, indicating a positive trend in this segment [4] Market Data and Key Metrics Changes - Rakuten Bank was listed on the Tokyo Stock Exchange Prime Market on April 21, 2023, marking a significant milestone for the company [3] Company Strategy and Development Direction - The company is focused on enhancing customer experience through new roaming contracts, which will also help in controlling costs [4] Management Comments on Operating Environment and Future Outlook - Management highlighted the strong performance of Internet Services and the ongoing improvements in Rakuten Mobile, suggesting a positive outlook for these segments [2][4] Other Important Information - The company held a press conference to announce new developments in Rakuten Mobile, indicating proactive communication with stakeholders [4] Q&A Session Summary Question: What are the expectations for Rakuten Mobile's future performance? - Management indicated that Rakuten Mobile is on a path of improvement, with ongoing efforts to enhance revenue and reduce losses [4]

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 ...

Financial Data and Key Metrics Changes - For FY 2022, Rakuten Group reported a consolidated revenue of JPY 183 billion, with a year-on-year growth of 16% [7] - The domestic e-commerce Gross Merchandise Sales (GMS) reached JPY 5.6 trillion, reflecting a 12.3% year-on-year increase [3][15] - Rakuten Card shopping GTV grew by 25.8% year-on-year, totaling JPY 18.2 trillion [5] - The membership value increased to JPY 8.3 trillion, marking a 28.6% year-on-year growth [8] Business Line Data and Key Metrics Changes - The Internet Services segment generated JPY 797 billion in revenue, with an operating income of JPY 95.6 billion [14] - The FinTech segment, including Rakuten Card, Bank, and Securities, showed an operating income increase of approximately 11% [42] - Rakuten Mobile's subscriber base reached 4.5 million, a 294% increase year-on-year [10] Market Data and Key Metrics Changes - Rakuten's unique users reached 39 million, with a year-on-year growth of 11.2% [7] - The global GTV for Rakuten increased by 23% year-on-year, totaling JPY 33.8 trillion [10] - Rakuten's brand recognition in Taiwan and Europe exceeded 80%, and in the United States, it approached 70% [13] Company Strategy and Development Direction - The company aims to enhance its ecosystem, targeting JPY 10 trillion in domestic e-commerce GMS [15] - Rakuten Mobile plans to improve its cost structure and marketing strategies, focusing on loyal subscribers rather than free service users [43] - The company is pursuing IPOs for Rakuten Bank and Rakuten Securities Holdings to strengthen its financial position [40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unstable global economy but emphasized the resilience of Rakuten's ecosystem [6] - The company expects significant improvements in Rakuten Mobile's financial situation in 2023, driven by cost reductions and effective marketing [42][43] - Management highlighted the importance of sustainability and corporate responsibility as part of their long-term strategy [41] Other Important Information - Rakuten Symphony reported a total revenue of $476 million for FY 2022, with a strong sales pipeline for future growth [35] - The company is focusing on Open RAN technology, positioning itself as a leader in this area [36] Summary of Q&A Session No Q&A session for this event [44]

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 ...