ENVALITH
楽天グループ株式会社 logo

Rakuten Group, Inc.

4755・Prime Market・Services

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楽天グループ株式会社 logo
Rakuten Group, Inc.4755

Business

Rakuten Group started in 1997 with the operation of Rakuten Ichiba, and currently operates across three segments: Internet Services, FinTech, and Mobile. The company integrally operates domestic and international e-commerce (Rakuten Ichiba, Rakuten Travel, Rakuten Kobo, etc.), financial services (Rakuten Card, Rakuten Bank, Rakuten Securities, Rakuten Pay, etc.), and communications services (Rakuten Mobile), pursuing the maximization of user lifetime value through a shared membership base and the Rakuten Points program. Consolidated revenue for FY2025 (ending December 2025) was ¥2,496,575 million. Main customers are individual consumers and corporate clients in Japan and overseas.

Business Model

The Rakuten Ecosystem is built around membership, data, and brand as its core, with a structure in which diverse services such as e-commerce, finance, and telecommunications mutually refer customers to one another. Rakuten Points function as the adhesive that connects services across the group, and the promotion of cross-use among Mobile MNO subscribers (Mobile ecosystem contribution amount: ¥19,480 million in FinTech, ¥14,542 million in Internet Services) lifts overall revenue. FinTech, as the group's largest profit-contributing segment (Non-GAAP segment profit of ¥199,922 million), underpins the entire structure.

Company Strengths

In FY2025 (ending December 2025), FinTech segment revenue was ¥975,931 million (up 19.0% year on year), and Non-GAAP segment profit was ¥199,922 million (up 30.3% year on year). All major services achieved revenue growth, including expansion of Rakuten Card shopping transaction volume, a substantial increase in Rakuten Bank's fund investment income driven by the Bank of Japan's rate hikes, and growth in Rakuten Securities' assets under custody.

In December 2025, the total number of subscription lines (MNO, MVNE, and MVNO combined) surpassed 10 million. The Mobile segment's Non-GAAP segment loss was ¥161,841 million, an improvement of ¥47,092 million from ¥208,933 million in the previous period, achieving EBITDA profitability for the period. Both B2C and B2B ARPU also rose compared to the fourth quarter of the previous year.

Through the promotion of cross-use starting from Rakuten Mobile (MNO) subscribers, the Mobile Ecosystem contribution reached ¥19,480 million in FinTech and ¥14,542 million in Internet Services (up 28.8% year on year). Built on the common point program and membership base, mutual customer referral effects across e-commerce, finance, and telecommunications can be quantitatively confirmed.

ENVALITH's Perspective

IFRS operating profit for Q1 FY2026 (ending December 2026) improved substantially to ¥30,394 million (versus a loss of ¥15,444 million in the same period of the previous year), and Non-GAAP operating profit also recovered sharply to ¥36,299 million (versus a loss of ¥305 million in the same period of the previous year). Meanwhile, the quarterly loss attributable to owners of the parent was ¥18,648 million (an improvement from a loss of ¥73,471 million in the same period of the previous year), remaining in negative territory. The recognition of ¥19,133 million in income tax expense is weighing on the bottom line, and it should be noted that the structure is such that pre-tax profit of ¥17,375 million turns into a loss after tax. EBITDA remained at a high level of ¥108,791 million (up 36.2% year on year), and the improvement in cash-generating capability is commendable.

In the current first quarter, the revision of the useful life of network equipment (a change in accounting estimate) increased operating profit and pre-tax profit by ¥8,609 million each. Approximately 28% of the IFRS operating profit of ¥30,394 million is attributable to this accounting change, and when assessing the actual degree of business improvement, it is important to make comparisons using figures that exclude this effect. This impact is included in the Non-GAAP metrics as well, and investors are required to reference both the disclosed GAAP and Non-GAAP figures while conducting their analysis with awareness of the impact of the accounting change.

The strong performance of the FinTech segment is mainly attributable to the expansion of Rakuten Bank's asset management income due to the Bank of Japan's policy rate hikes, and the significant increase in revenue and profit at Rakuten Securities amid buoyant stock market conditions. These are external factors that are variables not dependent on the company's own decision-making, and there is a risk that earnings could be significantly affected in a phase of falling interest rates or deteriorating stock market conditions. The company itself excludes the securities service from its earnings forecast, and a cautious assessment is needed regarding the sustainability and stability of overall FinTech earnings. On the other hand, the expansion of Rakuten Card's shopping transaction volume and the increase in Rakuten Pay's transaction volume can be evaluated as growth drivers specific to the company itself.

Growth Strategy

Evolving and expanding the ecosystem through a three-pronged approach: AI empowerment, Mobile profitability, and FinTech expansion

Promoting new customer acquisition and increased purchase amounts among existing users in Rakuten Ichiba and other e-commerce businesses through the use of agent-type AI tools such as AI concierge services. Working across the group to grow sales revenue and reduce costs through AI utilization, transitioning to a management structure that allocates AI-related development expenses to each segment. Also strengthening the provision of solution services leveraging data assets.

Continuing to increase the number of subscription lines through improved communication quality and its wider recognition, along with marketing initiatives leveraging the Rakuten Ecosystem. Also promoting the expansion of 4G/5G base station installations and area coverage expansion through smartphone and low-earth-orbit satellite direct communication. Segment loss (Non-GAAP, after considering ecosystem contribution) for Q1 FY2026 (ending December 2026) was ¥38,026 million, an improvement of ¥13,319 million year-on-year.

Simultaneously promoting expansion of Rakuten Card shopping transaction volume, diversification of Rakuten Bank's consumer loans and promotion of its securitization business, new account acquisition at Rakuten Securities, and growth in the number of Rakuten Pay users. FinTech segment revenue for Q1 FY2026 (ending December 2026) was ¥275,324 million (up 23.1% year-on-year), and Non-GAAP segment profit (after considering ecosystem contribution) was ¥58,532 million (up 33.8% year-on-year), maintaining high growth.

Quantitatively managing the promotion of Rakuten Mobile MNO subscribers' use of other services (Mobile ecosystem contribution) to boost revenue in both Internet Services and FinTech. The Mobile ecosystem contribution amount in Q1 FY2026 (ending December 2026) expanded to ¥6,239 million in FinTech (up 26.4% year-on-year). Also promoting deeper collaboration with local governments and regional businesses.

At Rakuten Symphony, which provides a communications platform using innovative mobile network technology, strengthening approaches to new customers in addition to expanding revenue from existing customers. Accelerating global expansion by capturing the global trend of telecom operators renewing network equipment and opening up base stations as a business opportunity.

Last updated: July 17, 2026