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Rakuten Posts First Quarterly Profit in Six Years as Revenue Jumps 12%

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Rakuten Posts First Quarterly Profit in Six Years as Revenue Jumps 12%

Rakuten Group (TYO:4755) posted a second-quarter attributable net income of 7.71 billion yen, marking the company's first quarterly profit since the second quarter of 2020, the Japanese tech conglomerate reported Monday.

The latest figure compared with an attributable net loss of 51 billion yen a year earlier. Earnings per share stood at 3.44 yen, versus a loss per share of 23.58 yen a year prior.

Revenue in the quarter ended June 30 jumped 11.6% year over year to 665.5 billion yen, boosted by revenue growth across all three segments: internet services, fintech and mobile.

In the fintech segment, Rakuten Bank (TYO:5838) reached 18.5 million accounts, up 8.1%, while total deposits reached 13.3 trillion yen, up 13.9%.

In the internet services segment, sales were up at home and overseas, while AI-powered search and targeted banner advertising on Rakuten Ichiba and Rakuten Travel also boosted revenue at the company's advertising unit.

Rakuten's mobile segment saw revenue grow 8.3% to 121.4 billion yen as mobile subscriptions rose 1.78 million to 10.8 million as of the end of June.

For the first half, Rakuten booked an attributable loss of 10.9 billion yen, significantly down from 124.4 billion yen a year earlier. Loss per share also shrank to 5.05 yen from 57.65 yen.

Revenue in the six-month period rose 12.9% year over year to 1.309 trillion yen.

For the full year, Rakuten expects to book "high single-digit growth in consolidated revenue" and "to achieve profitability again," the company said without disclosing actual figures.

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