Rakuten Group(US:RKUNY)2020-05-13 16:08Financial Data and Key Metrics Changes - Consolidated revenue increased by 18.2% year-on-year, reaching ¥331.4 billion [6][38] - Global Gross Transaction Value (GTV) rose by 23.7% year-on-year [6] - Non-GAAP operating loss recorded at ¥18.1 billion, compared to an operating income of ¥16.1 billion in Q1 2019 [7][38] - IFRS operating income was a loss of ¥24.1 billion, impacted by stock options and amortization [38] Business Line Data and Key Metrics Changes - Core business revenue grew by 13.8% year-on-year, with operating income up by 3.1% [9] - FinTech revenue increased by 22.9%, with non-GAAP operating income up by 14.7% [7] - Mobile business launched on April 8, with significant investments leading to a loss of ¥25.1 billion [8][40] - Rakuten Ichiba and other e-commerce platforms saw a 57.5% growth in GMS year-on-year [14] Market Data and Key Metrics Changes - Domestic e-commerce GMS growth accelerated by 9.8% compared to Q4 2019 [6] - Rakuten's membership value increased to ¥6.2 trillion, up 32.7% year-on-year [40] - Cross-use ratio among services rose by 72.3% [41] Company Strategy and Development Direction - The company is focusing on a diversified ecosystem, reallocating resources to growing sectors due to COVID-19 impacts [7][11] - Emphasis on mobile and logistics as investment phase businesses, with plans for future growth [10][39] - The company aims to enhance its digital content and e-commerce platforms while adapting to the new normal [18][21] Management's Comments on Operating Environment and Future Outlook - Management noted strong growth in various categories despite the pandemic, particularly in healthcare and daily goods [14] - The company is optimistic about the future, with expectations for continued growth in membership and cross-use of services [40][41] - Management acknowledged challenges in the travel and sports sectors due to COVID-19 but expressed confidence in recovery [12][36] Other Important Information - The company has achieved 97% work-from-home implementation and is seeing productivity improvements [5][19] - Rakuten Mobile is positioned as the fourth player in the mobile market, with a focus on full virtualization technology [23][27] - The company is actively involved in community support, providing accommodations for mildly ill patients [22] Q&A Session Summary Question: What is the outlook for Rakuten's mobile business? - Management highlighted that Rakuten Mobile is expected to achieve success in Japan and evolve into a global platform, with significant investments in 5G technology [27] Question: How is Rakuten adapting to the COVID-19 pandemic? - The company is reallocating resources to growing sectors and enhancing digital services to meet changing consumer needs [11][21] Question: What are the challenges faced in the travel and sports sectors? - Management acknowledged significant setbacks in travel and sports due to cancellations but remains hopeful for recovery as conditions improve [12][36]