The Rakuten Group, a global leader in internet services, e-commerce, and fintech, has announced its financial results for the six months ending June 30, 2023. The company displayed a remarkable rebound in its financial performance, marked by substantial revenue growth and reduced operating losses.
During this period, Rakuten Group has achieved a total revenue of ¥972,800 million, showcasing an impressive year-on-year growth of 9.5 percent. This robust revenue expansion can be attributed to the group’s strategic efforts across its diverse business segments.
In terms of operating results, Rakuten reported an operating loss of ¥125,087 million for the first half of 2023. While this still represents a loss, it signifies a significant improvement compared to the operating loss of ¥198,730 million recorded in the same period last year. The company’s cost management initiatives and business optimizations played a crucial role in narrowing this loss.
The most notable turnaround was observed in Rakuten’s net profit, which stood at ¥139,985 million for H1 2023. This marks a substantial recovery from the net loss of ¥177,892 million reported in the first half of 2022. The positive trajectory in net profit highlights Rakuten’s successful implementation of strategic initiatives aimed at enhancing profitability and shareholder value.
Segment-wise, the Internet Services segment demonstrated remarkable growth, with revenues reaching ¥565,824 million, reflecting a 10.2 percent year-on-year increase. However, the segment profit experienced a 20.4 percent year-on-year decrease, settling at ¥26,326 million. In the FinTech sector, Rakuten recorded revenues of ¥349,027 million, showcasing a growth of 10.5 percent year-on-year. Notably, the segment profit displayed a robust increase of 26.1 percent, reaching ¥59,640 million.
In the Mobile segment, Rakuten reported revenue of ¥176,404 million, representing a substantial year-on-year growth of 12.1 percent. Despite this positive revenue trend, the segment recorded a loss of ¥185,093 million. However, this loss has considerably contracted since its peak in the previous year, indicating ongoing efforts to mitigate losses.
Rakuten’s mobile services experienced a boost due to increased telecommunication fees, contributing significantly to revenue growth. The launch of the SAIKYO Plan in June 2023 further fueled this growth, with data usage on a steady upward trajectory. This is expected to drive higher Average Revenue Per User (ARPU) and overall revenue. Simultaneously, Rakuten managed to reduce costs, particularly network-related expenditures, and capitalized on new roaming contracts to manage capital expenditures more efficiently.
Rakuten Mobile has 4.81 million mobile customers. Rakuten Mobile’s ARPU reached JPY 2,010. Rakuten Mobile churn rate was 1.93 percent.
Rakuten Group’s impressive financial performance for the first half of 2023 underscores its ability to adapt to market dynamics and optimize operations across its various business segments. The company’s strategic approach and commitment to delivering value to its customers and shareholders continue to drive its growth trajectory.
