RAKUTEN GROUP, INC. FY2024 First Quarter Consolidated Financial Results
May 14, 2024
Rakuten Group, Inc.
Steady progress toward Rakuten Mobile monthly EBITDA*1
profitability by end of 2024
Rakuten Mobile EBITDA*1 (excl. property tax), when:
- excluding CAC*2 (investments for growth), and
- including Ecosystem EBITDA uplift*3
is nearly profitable
*1: EBITDA = Non-GAAP OI + depreciation and amortization etc. *2: Customer acquisition costs at Rakuten Mobile (including promotion costs and shop expenses as customer acquisition costs) Excluding sales promotion
costs for retention purposes such as SPU. *3: The difference between the average per capita sales of 16 businesses (Rakuten Ichiba, Rakuten Books, Rakuten Direct, Rakuten Bic, Rakuten Kobo, Rakuten Fashion, Rakuten Travel, Rakuten Seiyu Netsuper, Rakuten Beauty, Rakuten Pay app payments, Rakuten Pay online payments, Rakuten Card, Rakuten Bank, Rakuten Securities, Rakuten Life, Rakuten General Insurance) for the most recent one-year period is added to the gross profit margin of each business.
2
Agenda
Q1/24 Highlights
Segment Results
Internet Services Segment
FinTech Segment
Mobile Segment
Triple 20
Finance
AI
3
1. Q1/24 Highlights
Q1/24 Consolidated Revenue
+ 8.0% | ||
YoY | ||
(JPY bn) | 513.6 | |
475.6 | ||
+ 3.6% | 99.8 | |
96.3 | ||
YoY | ||
168.0 | + 15.1% | 193.5 |
YoY | ||
271.1 | + 5.4% | 285.7 |
YoY |
-59.9-65.4
Q1/23Q1/24
Internet Services Segment | FinTech Segment |
Mobile Segment | Consolidation Adjustment |
Steady revenue growth in each business
Consolidated revenue:
JPY 513.6bn
Record high for Q1
Internet Services: Rakuten Ichiba and Rakuten Travel
plus overseas businesses performed well
FinTech: Growth in all services from expansion of
customer base and transaction value
Mobile: Growth in Rakuten Mobile subscribers boosted
MNO service revenue by JPY 9.6bn YoY
5
Q1/24 Consolidated Non-GAAP Operating Income
(JPY bn) | + 47.4% | |||||
YoY | 39.3 | |||||
26.6 | + 14.8% | |||||
13.6 | ||||||
11.9 | YoY | |||||
+ 30.7bn | -71.9 | |||||
-102.7 | YoY | |||||
-6.4 | ||||||
-25.4 | ||||||
-4.8 | ||||||
-69.0 | ||||||
+ 43.5bn | ||||||
YoY | ||||||
Q1/23 | Q1/24 | |||||
Internet Services Segment | FinTech Segment |
Mobile Segment | Consolidation Adjustment |
Revenue expansion and successful cost
optimization in each business
Consolidated Non-GAAP OI
+JPY 43.5bn YoY
On track to achieve annual profitability
Internet Services: significant profit improvement in growth
investment businesses and overseas businesses
Rakuten Card: profitability improved
Rakuten Payment: turned profitable
Rakuten Securities: profit back to pre-zero commission level
Rakuten Mobile: continued loss reduction thanks to revenue
growth and cost optimization
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Q1/24 Consolidated EBITDA*
+ 49.3bn | ||||||
YoY | ||||||
(JPY bn) | 52.8 | |||||
3.5 | ||||||
4.8 | ||||||
5.0 | + 34.0% | |||||
54.6 | ||||||
40.7 | ||||||
YoY | ||||||
21.1 | + 9.6% | 23.1 | ||||
YoY | ||||||
-63.4 | + 33.7bn | -29.7 | ||||
YoY |
Q1/23Q1/24
Internet Services Segment | FinTech Segment |
Mobile Segment | Consolidation Adjustment |
*EBITDA = Non-GAAP operating income + depreciation and amortization etc.
Successful cost optimization at Rakuten
Mobile
Consolidated EBITDA
JPY 52.8bn
Cash flow from business activities:
Emphasis on EBITDA as a KPI to evaluate
ability to generate cash
7
Corporate Bond Redemptions
Successfully issued USD 2bn of USD-denominated senior notes and JPY 50bn of JPY-denominated senior notes
Liquidity gap for 2025 maturities largely addressed
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2. Segment Results
Internet Services Segment
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Rakuten Group Inc. published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 06:35:10 UTC.
