Rakuten’s 2024 Earnings: Growth and Strategic Optimism

Rakuten ( (RKUNF) ) has released its Q4 earnings. Here is a breakdown of the information Rakuten presented to its investors.

Rakuten Group, Inc. is a prominent Japanese conglomerate that operates across various sectors including e-commerce, FinTech, mobile services, and more, known for its expansive ecosystem that integrates these services to enhance customer experience.

In its latest earnings report for the fiscal year ended December 31, 2024, Rakuten showcased a significant improvement in its financial performance, achieving a 10% year-over-year revenue increase and turning profitable at the operating level for the first time in five years. This positive shift is attributed to strategic adjustments and growth across its key business segments.

The company reported a consolidated revenue of ¥2,279,233 million for 2024, driven by a 5.8% revenue increase in Internet Services, a 13.1% rise in FinTech revenue, and a 20.9% surge in Mobile segment revenue. These segments benefited from new customer acquisitions, efficient marketing strategies, and technological enhancements. However, despite the operating income turnaround, Rakuten still faced a net loss attributable to owners of ¥162,442 million, an improvement from the previous year’s loss of ¥339,473 million.

Rakuten’s forward-looking strategy emphasizes leveraging its diverse ecosystem to drive further growth and profitability. The company aims for double-digit revenue growth in 2025, excluding the securities business, and expects to achieve Non-GAAP operating income profitability by capitalizing on synergies within its ecosystem and optimizing its business operations.

Overall, Rakuten’s management remains focused on expanding its market presence and enhancing its competitive edge by integrating advanced technologies such as AI and improving service offerings across its various business segments.