Rakuten Group (4755) Q1 2025 earnings summary

Executive summary

• Consolidated revenue reached a record JPY 562.7 billion in Q1 2025, up 9.6% year-over-year, with growth across Internet Services, FinTech, and Mobile segments.

• EBITDA rose to JPY 79.9 billion, a 51.4% year-over-year increase, reflecting improved cash flow generation.

• Non-GAAP operating loss was sharply reduced to JPY 305 million from JPY 25.4 billion year-over-year.

• Mobile segment achieved its first-ever quarterly EBITDA profit (excluding fixed asset tax), with significant loss reduction and subscriber growth.

• All necessary funds secured for 2025 debt maturities; diverse funding sources available for 2026 and beyond.

Financial highlights

• Revenue: JPY 562.7 billion (+9.6% YoY); EBITDA: JPY 79.9 billion (+51.4% YoY); IFRS operating loss: JPY 15.4 billion (improved from JPY 33.3 billion loss); net loss: JPY 73.5 billion (widened from JPY 42.4 billion loss).

• Non-GAAP operating loss improved to JPY 305 million from JPY 25.4 billion YoY.

• Mobile segment revenue: JPY 110.7 billion (+10.9% YoY); standalone revenue up 40.7% YoY.

• Internet Services revenue: JPY 305.5 billion (+6.9% YoY); segment profit JPY 13.2 billion (+25.8% YoY).

• FinTech revenue: JPY 223.6 billion (+15.6% YoY); segment profit JPY 43.9 billion (+21.7% YoY).

Outlook and guidance

• FY2025 and mid-term financial targets remain unchanged despite macroeconomic uncertainty.

• Targeting double-digit consolidated revenue growth for FY2025 (excluding securities business), with a goal to achieve Non-GAAP operating profitability.

• Aims for full-year EBITDA profitability for the mobile segment.

• Focus on working capital optimization, targeting over JPY 200 billion cumulative cash generation by end of FY2025.