Rakuten Group, Inc.

Business Details

Operates the internet shopping mall Rakuten Ichiba as its flagship service, alongside domestic and international digital services including travel booking service Rakuten Travel, e-book service Rakuten Kobo, and messaging service Rakuten Viber. The segment operates a wide range of businesses including e-commerce sites, travel booking, digital content, advertising sales, and professional sports management, and serves as the largest segment supporting the Group's overall revenue base through customer referrals and cross-use promotion within the Rakuten Ecosystem. Segment revenue for FY2025 (ended December 2025) was ¥1,369,697 million, accounting for approximately 49% of the Group's total.

Recent Overview

Q1 FY2026 revenue up 4.0% year-on-year, segment profit up significantly by 65.6%

In Q1 FY2026 (ending December 2026), Internet Services segment revenue was ¥317,645 million (up 4.0% year-on-year), and segment profit after considering Mobile Ecosystem contribution was ¥21,170 million (up 65.6% year-on-year). At Rakuten Ichiba, gross merchandise sales and revenue grew, and profit increased due to improved marketing efficiency. Rakuten Travel saw an increase in transaction volume driven by recovery in inbound and domestic travel demand. Growth investment businesses (logistics, online supermarket, etc.) also achieved reduced losses through successful profitability improvement. In the International division, although there was an impact from the closure of some services, profit increased due to Rakuten Viki's plan fee revisions and cost reductions. Note that a fixed asset impairment of ¥1,019 million associated with the withdrawal from a portion of the European marketplace business was recorded as a non-recurring item.

Key Products

Growth Drivers

• Acquisition of new customers and increased purchase amounts among existing users through the use of agentic AI tools such as AI concierge
• Expansion of ecosystem-wide customer referrals through cross-use promotion centered on Rakuten Mobile MNO subscribers
• Growth in Rakuten Travel transaction volume driven by expanding inbound demand and recovery in domestic travel demand
• Cost optimization and improved profitability through enhanced marketing efficiency
• Continued profitability improvement in growth investment businesses such as logistics and online supermarket businesses
• Expansion of business scale and revenue in overseas Internet Services such as Rakuten Rewards and Rakuten Viber

Risks

• Early improvement of loss-making overseas businesses remains a challenge, including fixed asset impairment of ¥1,019 million recorded in Q1 due to withdrawal from part of the European marketplace business
• Risk of sluggish revenue growth due to the impact of closing some services in overseas Internet Services (open commerce)
• Structural burden on segment profit from the increase in Mobile Ecosystem contribution amount (¥3,932 million)
• Risk related to delayed customer acquisition and pace of loss improvement in the warehouse-style online supermarket business (Rakuten Mart)
• Intensifying competition in the domestic e-commerce market and changes in consumer purchasing behavior (return to physical stores post-pandemic)