Rakuten Group, Inc.

Consolidated revenue was JPY 665.5 billion, up 11.6% year on year. Consolidated EBITDA was JPY 150.3 billion, up 11.7% year on year. Non-GAAP operating income was JPY 42 billion, and IFRS operating income was JPY 20 billion after JPY 17 billion of impairment losses in the logistics business. Net income attributable to owners of the parent was JPY 227.2 billion, returning to profit for the first time since Q2 2020. By segment, internet services revenue was JPY 338.1 billion, up 4.2%, with non-GAAP operating income up 68.6% to JPY 23.1 billion; fintech revenue was JPY 295.4 billion, up 27%, with non-GAAP operating income up 60.1% to JPY 69.2 billion; mobile revenue was JPY 121.4 billion, up 8.3%, with non-GAAP operating income improving by JPY 4.1 billion, though EBITDA remained negative at JPY 32.3 billion. Management did not provide formal next-quarter or full-year consolidated guidance in the remarks shared, but reiterated a long-term target of more than JPY 85 billion in fintech synergies by fiscal 2030 and said the group will continue self-funding the mobile business without relying on external financing.

Hiroshi Mikitani framed the quarter as evidence that Rakuten’s businesses are moving onto a growth trajectory, emphasizing that the profit turnaround should be sustained rather than treated as a one-off. He highlighted fintech integration, stronger cross-use across the ecosystem, and AI as the main strategic pillars, repeatedly pointing to synergies from combining banking, securities, and card services. His tone was upbeat and confident, but he also acknowledged challenges in mobile and the need to keep improving profitability and network economics.

Eiichi Kaga focused on the quality of earnings and balance-sheet cleanup. He said the JPY 20 billion IFRS operating income reflected one-off, non-cash impairment losses of JPY 17 billion in logistics, and noted that the group has now impaired the entire book value of its own warehouses, reducing future balance-sheet risk. He also explained the tax benefit tied to share sales, said the company has more than JPY 1 trillion of net operating loss carryforwards, and reaffirmed the self-funding policy: roughly JPY 200 billion was raised through share sales in Q2, perpetual subordinated bonds were redeemed in full, and JPY 20 billion of senior bonds were repaid with cash on hand.

There was no real analyst Q&A in the transcript; the presentation was mostly management remarks. The most notable discussion points were management’s explanation of the fintech reorganization, including that it is not a fundraising step and that the company has no intention of selling bank shares, plus the clarification that roaming with KDDI will continue only where Rakuten lacks coverage and will be reduced gradually elsewhere. Management also addressed the logistics impairment and said the warehouse-related balance-sheet risk is now eliminated.