Rakuten Group Q1 FY2025 Financial Results Highlights
Rakuten Mobile as an individual business achieves first quarterly EBITDA profitability excluding property taxes, marking a positive start towards achieving full-year profitability in 2025
Overall Performance
The Rakuten Group recorded year-on-year (YoY) revenue growth in all three segments in Q1 FY2025: Internet Services, FinTech and Mobile. Consolidated revenue reached 562.7 billion yen, a record high for the first quarter, up 9.6% YoY.
The FinTech business performed well due to Rakuten Card’s increased transaction volume and higher revenues for Rakuten Bank driven by rising interest rates. In addition to robust growth in domestic e-commerce and overseas businesses in the Internet Services segment, increasing Rakuten Mobile subscriptions also significantly contributed to revenue growth.
The Rakuten Group recorded Non-GAAP operating losses in Q1 FY2025 of 300 million yen, an improvement of 25.1 billion yen YoY, boosted by Rakuten Mobile’s improved losses due to increased revenue, and significant profit growth in Rakuten Bank and Rakuten Payment. Consolidated EBITDA, an indicator the Rakuten Group uses to assess the ability to generate cash flow, was profitable for the quarter, recording a surplus of 79.9 billion yen, a substantial increase of 51.4% YoY.
Rakuten Mobile, Inc.’s quarterly EBITDA was profitable at 102 million yen, excluding property taxes, marking a positive start towards achieving full-year EBITDA profitability in 2025.
Rakuten Group has already secured funding for all its bonds maturing in 2025, including the replacement of hybrid bonds. The Group has a variety of funding options for interest-bearing debt maturing in 2026 and beyond, and its plans to redeem USD-denominated Undated Subordinated Notes on their first call date in April 2026 remain unchanged.
https://global.rakuten.com/corp/news/press/2025/0514_01.html |