Rakuten Group, Inc.

Rakuten reported consolidated revenue of JPY 665.5 billion, up 11.6% year on year, consolidated EBITDA of JPY 150.3 billion, up 11.7%, and non-GAAP operating income of JPY 42 billion. Net income attributable to owners of the parent was JPY 227.2 billion, returning to profit for the first time in six years / since Q2 2020, while IFRS operating income was JPY 20 billion after JPY 17 billion of impairment losses in the logistics business. Segment highlights included internet services revenue of JPY 338.1 billion (+4.2%) with non-GAAP operating income of JPY 23.1 billion (+68.6%), fintech revenue of JPY 295.4 billion (+27%) with non-GAAP operating income of JPY 69.2 billion (+60.1%), and mobile revenue of JPY 121.4 billion (+8.3%) with non-GAAP operating income improving by JPY 4.1 billion. Within fintech, Rakuten Bank reported ordinary revenue of JPY 78.4 billion and ordinary profit of JPY 30.2 billion (+26.1%), while Rakuten Payment revenue was JPY 29.1 billion (+12.2%) and non-GAAP operating income was JPY 3.2 billion. Management did not provide formal next-quarter or full-year guidance, but said the fintech reorganization is expected to produce more than JPY 85 billion in synergies by FY ending March 2030, and reiterated that mobile will be self-funded without relying on external financing.

Hiroshi Mikitani framed the quarter as evidence that the group’s businesses are on a growth trajectory, highlighting record revenue, EBITDA, and a return to net profit. He emphasized that the mobile business remains a challenge but also a growth driver, and said the profit improvement should be sustained rather than treated as a one-off. Strategically, he focused on integrating the financial businesses and using AI to connect Rakuten’s commerce and service ecosystem.

Eiichi Kaga said the quarter’s non-GAAP operating income of JPY 42 billion and IFRS operating income of JPY 20 billion reflected improving underlying cash-generation capacity despite JPY 17 billion of logistics impairment charges. He explained that the tax benefit tied to share sales helped drive the JPY 227.2 billion net profit, and noted Rakuten has more than JPY 1 trillion of net operating loss that could offset future tax expense. On capital allocation and funding, he said roughly JPY 200 billion was raised through asset sales in the quarter, that the company remains committed to self-funding the mobile business, and that bond redemptions are proceeding smoothly, including full redemption of perpetual subordinated bonds and JPY 20 billion of senior bonds repaid with cash on hand.

There was no analyst Q&A in the transcript, so the key discussion points came from management’s prepared remarks. The main concerns addressed were the logistics impairment, the company’s funding approach for mobile, and whether the fintech reorganization was being done to raise capital; management said the reorganization is not a fundraising move and that it has no intention of selling bank shares. Mikitani also addressed KDDI roaming, saying Rakuten will continue roaming where needed from October but will gradually reduce roaming where its own coverage exists.