Rakuten Group(US:RKUNY)2024-02-14 13:38Financial 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]