Rakuten ( (RKUNF) ) has released its Q1 earnings. Here is a breakdown of the information Rakuten presented to its investors.
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Rakuten Group, Inc., a prominent player in the e-commerce, fintech, and mobile sectors, is known for its diverse services ranging from internet shopping to financial technology solutions and mobile communications.
In its latest earnings report for the first quarter of 2025, Rakuten reported a 9.6% increase in revenue compared to the same period last year, reaching ¥562,704 million. Despite this growth, the company faced a net loss attributable to owners of ¥73,471 million, reflecting ongoing challenges in profitability.
Key highlights from the report include significant revenue growth in the FinTech segment, which saw a 15.6% increase, driven by an expanding customer base and higher transaction values across its credit card and banking services. The Mobile segment also showed progress with a 10.9% rise in revenue and a reduction in segment losses, attributed to improved network quality and strategic marketing efforts. However, the overall financial position showed a decrease in total assets and equity, primarily due to reductions in cash and cash equivalents and retained earnings.
Looking ahead, Rakuten aims for double-digit revenue growth for the fiscal year 2025, excluding its securities business, with a focus on achieving profitability in Non-GAAP operating income. The company plans to leverage its ecosystem to enhance customer engagement and expand its market presence across its core segments.