Rakuten wesentlich besser als Rocket

Denn weniger als ein Kursplus von 10% morgen früh in Tokio wäre für mich eine Überraschung.  

Record high revenue and Group-level profitability: Rakuten’s 2023 full year and Q4 financial results

February 14, Rakuten announced financial results for the fiscal year 2023 and fourth quarter of 2023 from the company’s Crimson House headquarters in Tokyo. Chairman and CEO Mickey Mikitani, as well as leaders from the Rakuten Group, shared full year highlights from the company’s diverse portfolio of more than 70 services.

Rakuten reaches record revenue in 2023

Rakuten Group achieved a record-high consolidated revenue of 2.1 trillion yen, up by 7.8% year-on-year (YoY), marking 27 consecutive years of growth.

The group achieved Non-GAAP EBITDA profitability for the fiscal year for the first time in three years, with Non-GAAP EBITDA of 148.2 billion yen, an improvement of 218.1 billion yen YoY. In addition, the non-FinTech businesses (Internet Services and Mobile segments) were also Non-GAAP EBITDA profitable in Q4 FY2023.

The Rakuten Group recorded consolidated Non-GAAP operating income of 21.2 billion yen in December 2023, achieving profitability on a monthly basis as planned.

As a result of decreased operating losses in the Mobile business and strong growth in the FinTech segment, the Group recorded Non-GAAP operating losses in FY2023 of 153 billion yen, a significant improvement of 182.2 billion yen YoY.

The advertising business marked double-digit revenue growth of 12.9% YoY and hit its 2023 revenue target of 200 billion yen.

Rakuten Group achieved a record-high consolidated revenue of 2.1 trillion yen, marking 27 consecutive years of growth.

“BACK IN 1997, WE WERE ONE OF THE FIRST TO MARKET WITH THE ‘BUSINESS TO BUSINESS TO CONSUMER (B2B2C)’ MODEL. NOW THIS HAS EVOLVED WITH OUR VARIOUS SERVICES CONNECTING ORGANICALLY AND WE HAVE GROWN TO BECOME AN ECOSYSTEM. FROM THIS YEAR ONWARDS, WE WILL EVOLVE FURTHER INTO INTO AN AI EMPOWERMENT COMPANY.”
MICKEY MIKITANI, CHAIRMAN AND CEO, RAKUTEN GROUP

Internet Services segment revenue grows

Rakuten’s Internet Services segment achieved significant growth in both revenue and profit, with revenue of 1.21 trillion yen, up 9.8% YoY, and Non-GAAP operating income of 76.8 billion yen, up 18.9% YoY. Domestic e-commerce gross merchandise sales (GMS)* in FY2023 grew by 6.9% YoY, reaching 6.0 trillion yen.

In overseas businesses, Rakuten’s digital content businesses saw a steady expansion of their customer bases. The total number of Rakuten TV users and registered Viki users achieved double-digit growth of 42.8% YoY and 23.4% YoY, respectively.

Reflecting on the evolution of the company, Mikitani commented, “Back in 1997, we were one of the first to market with the ‘business to business to consumer (B2B2C)’ model. Now this has evolved with our various services connecting organically and we have grown to become an ecosystem. From this year onwards, we will evolve further into an AI empowerment company.”

FinTech forges ahead

The FinTech segment delivered strong revenue and profit growth in FY2023. Revenue for the segment was 725.2 billion yen, up 11.2% YoY, and Non-GAAP operating income was 122.9 billion yen, an increase of 36.8% YoY. As of December 2023, the number of Rakuten Cards issued was 30.07 million. Supported by the ongoing transition towards cashless payments, Rakuten Card’s annual shopping gross transaction value (GTV) jumped to 21.1 trillion yen, up 16.4% YoY.

The FinTech segment saw major growth in FY2023 as it continues its business success.

Growing user numbers for Rakuten Pay and Rakuten Card and an increasing number of locations accepting these services contributed to an impressive increase in Rakuten Payments revenue to 75.0 billion yen in FY2023, up 35.7% YoY.

Rakuten Securities recorded 10.2 million customer accounts as of the end of December 2023, an increase of 18.1% YoY, while Rakuten Bank also continued to grow, with customer accounts (non-consolidated) reaching 15 million as of February 11, 2024.

Rakuten Mobile on the track to profitability

Driven by boosted subscriber numbers, the overall Mobile segment posted revenue of 364.6 billion yen, an increase of 3.9% YoY. The segment’s Non-GAAP operating losses and Non-GAAP EBITDA also showed improvement by 141.7 billion yen YoY and 159.9 billion yen YoY, respectively.

Driven by growing subscriber numbers, Rakuten’s mobile business is on the road to profitability.
Rakuten Mobile as an individual business noted double-digit revenue growth of 17.7% YoY, bringing in 224.9 billion yen in FY2023. The company’s Non-GAAP operating losses contracted by 136.8 billion yen YoY due to increased subscribers. This signals steady progress towards achieving monthly Non-GAAP EBITDA profitability within 2024.

The total number of MNO subscriptions (both individual and business, including BCP customers) saw acceleration, reaching 6.09 million as of the end of December 2023.

Rakuten Group, in collaboration with German operator 1&1 Mobilfunk, launched mobile services for Europe’s first fully virtualized 5G mobile network based on Open RAN standards built by Rakuten Symphony.

“WE BELIEVE RAKUTEN CAN LEAD THE WAY AND EMPOWER WITH RAKUTEN AI. WE ARE COMMITTED TO BRINGING VALUE TO OUR BUSINESS PARTNERS, TO ALL OUR SERVICES, TO BENEFIT OUR CUSTOMERS AND TO IMPROVE MARKETING, OPERATION AND CLIENT PRODUCTIVITY.”
TING CAI, CHIEF DATA OFFICER, RAKUTEN GROUP

Road to becoming an AI empowerment company

Rakuten leaders also took this financial results presentation as an opportunity to emphasize the importance of leveraging AI for Rakuten’s businesses moving ahead.

Rakuten Group’s Chief Data Officer Ting Cai said, “We believe Rakuten can lead the way and empower with Rakuten AI. We are committed to bringing value to our business partners, to all our services, to benefit our customers and to improve marketing, operation and client productivity.”

https://rakuten.today/blog/rakuten-fy2023-q4-financial-results.html

 

Rakuten Securities Reaches 10 Million Accounts and Launches New TikTok Account

https://www.google.de/...ve&vld=cid:866c2dbe,vid:OkoZWY0ig1Q,st:0
 

Die 10% Kursansteig wurden sogar noch erheblich übertroffen.  

Times & Sales: Tradegate

      Kurs               Stück              Umsatz§Lfd. Stück Lfd. Umsatz
  13:20:22§4,50 € 8.908 40.086 € 31.100 139 T €
  13:20:05§4,49 € 1.092 4.903 € 22.192 99 T €
  13:19:07§4,49 € 1.092 4.903 € 21.100 94 T €
  13:18:14§4,49 € 1.092 4.903 € 20.008 89 T €
  12:45:47§4,42 € 42 186 € 18.916 84 T €
  12:45:43§4,42 € 12.050 53 T € 18.874 84 T €

https://www.ariva.de/rakuten_bank_ltd-aktie/kurse/...es?boerse_id=131
 

8908 plus 1092 plus 1092 plus 1092 = 12184

und 12184 ist fast gleich 12050

Wenn da Käufer und Verkäufer identisch waren, stellen sich schon Fragen nach dem Sinn.  

For Rakuten Mobile, scale is still elusive as it enters Phase 3

By Ray Le Maistre Feb 14, 2024

Rakuten Mobile’s numbers all improved in 2023

It is still losing money, though at a less eye-watering rate

Japanese operator predicts more substantial customer base growth during 2024

And expects to be profitable on an EBITDA basis by the end of this year and have up to 10 million customers

But it will still be a minnow

https://www.telecomtv.com/content/...sive-as-it-enters-phase-3-49646/
 

I believe in opposite to Ray le Maistere, that Rakuten Mobile will scale and reach between 9.5 million and 10 million subscribers at the end o 2024 after 6.09 million subschribers at the end of 2023.  

Rakuten Mobile operating loss shrinks on cost-cutting

FEBRUARY 14, 2024

Rakuten Mobile chair Mickey Mikitani (pictured) highlighted on an earnings call it achieved a cost optimisation target of JPY16 billion ($106.3 million) in 2023, with spending expected to come down by an additional 10 per cent to 15 per cent this year.

Full-year capex of JPY177.6 billion came in 11.2 per cent lower than its initial guidance, with the outlay in the current year forecast to drop below JPY100 billion. He tipped roaming costs to continue to decline.

Mikitani said it aims for monthly EBITDA breakeven by end-2024 and maintained a target to achieve this on an annual basis in 2025.

https://www.mobileworldlive.com/rakuten/...0decrease%2520in%25202022.
 

Revenue from software platform Rakuten Symphony grew 91.5 per cent from the previous quarter to JPY21.5 billion, with Mikitani noting continued progress in deliveries to existing global customers, but with more focus on anchor clients.

https://www.mobileworldlive.com/rakuten/...0decrease%2520in%25202022.
 

 

Mobile customer service typically refers to customer support services that are provided through mobile channels such as text messaging, mobile apps, social media, and phone calls. This type of customer service allows customers to easily and conveniently access support while on-the-go. Many companies have implemented mobile customer service as a way to improve customer satisfaction and increase engagement with their customers.
 

The K-drama economy in India has been driven by a number of factors in recent years. One of the main drivers is the increasing popularity of Korean dramas, which have gained a dedicated following in India. The shows are known for their unique storylines, relatable characters, and high-quality production values, which have helped to attract a diverse audience of all ages.

Another factor driving the K-drama economy in India is the rise of streaming services such as Netflix, Amazon Prime Video, and Viu. These platforms have made it easier than ever for viewers to access Korean dramas and other international content, leading to a surge in demand for these shows.  

Time to translate assets into valuable solution" suggests that it is time to take the resources or tools available and turn them into something useful or effective. This could refer to a variety of scenarios, such as a business taking its existing assets and using them to create a new product or service, or an individual using their skills to solve a problem or achieve a goal. Essentially, the phrase implies that it is time to put in the effort to turn potential into reality, and to create something of value from the resources available.  

In the telecom industry, time is often considered a significant cost unit. This is because telecom infrastructure relies heavily on time-based resources, such as the time it takes to transmit data over a network or the time it takes to install and maintain equipment.

However, it is important to note that many other factors can impact the cost of telecom infrastructure and services, including hardware and software, labor, and regulatory compliance costs. While time is certainly an important consideration, it is not necessarily the biggest cost unit in all cases.

It's also worth noting that the telecom industry is constantly evolving, with new technologies and business models emerging that may impact the way that costs are calculated and allocated. As such, companies in the telecom industry need to stay up-to-date with the latest trends and developments to remain competitive and profitable.  

Ebizneed: An award-winning app development company that has developed education apps like Algebra Touch and Mathemagics.  

 

the excellent facts about Rakuten.

My advice: Scroll to the facts!  

Non-GAAP Operating Income Excluding Mobile Segement and Investment Business was JPY 66.3 billion in Q4/23 or abut JPY 265 billion ($ 1.76 billion) on a yearly base. This $1.76 billion are the NON-GAAP operation income,  if the Mobile will reach the break-even. By a P/E of only 15 and this $ 1.76 billion net income the valuation of Rakuten would be $26.4 billion. And this $26.4 billion valuation would by 2.14 billion shares a share price of $12.34 (= 1853 JPY).

Q4/22 Q4/23 YoY (JPY bn, rounded )
Non-GAAP Operating Income (Losses) -72.6 -3.6 +69.0
NON-GAAP (Ref. Excluding Mobile Segment & Investment Business) 41.7 66.3 +59.0%
Internet Services Segment 15.0 33.9 +126.2%
FinTech Segment 21.5 34.7 +61.3%
Mobile Segment -107.8 -71.2 +36.6
Adjustment -1.3 -0.9 +0.4

global.rakuten.com/corp/investors/documents/
Latest IR Materials
 

“But said, Rakuten Symphony, a large significant deal has been conducted. Non-GAAP internet services segment is 33.9% and FinTech 34.7% and Mobile is minus 71.2%. As the result of that, the non-GAAP operating profit of the fourth quarter is only extreme low minus JPY 3.6 billion. YoY in the same quarter there is an improvement of JPY 69 billion.”

Source: My transcript of the conference call
 

"For the full year 2024 for the non-GAAP operating profit we are trying to achieve profitability. In December 2023 we have achieved profitability in a single month, but we like to make sure that this is going on for the full year 2024."

Source: My transcript of the conference call
 

I believe, the rating for Rakuten through S&P by such excellent numbers is criminal and a result of to help better clients of S&P, which are rivals of Rakuten, to defend their claims.

I believe the SEC should take a look at such criminal activities of S&P.  

“And if you are looking in the terms of non-GAAP EBTIDA of Rakuten Mobile, we also going to make it sure, that within this year we going to turn the non-GAAP EBITDA of Rakuten Mobile into surplus.”

Source: My transcript of the conference call
 

For the full year 2023, Rakuten Symphony revenue was flat from the prior year, at 52.4B JPY (~$350M). Symphony reports 19 clients as of Q423, including Germany's 1&1.

https://twitter.com/EGubbinsAnalyst/status/175781002044651962  

Rakuten using India as a major global innovation hub for OpenRAN and 6G, says top executive

DANISH KHAN FEBRUARY 16, 2024

Japan's Rakuten Group is using India as a major global innovation and engineering hub for OpenRAN, cloud and 6G development and is planning to hire more engineers this year across its three research and development (R&D) centres. Through its subsidiary, Rakuten Symphony, the group is looking to partner with Indian telecom operators to help with OpenRAN 5G and small-cell deployments.

Rakuten Symphony houses the group’s telecom and networking technologies and IPs.

“India is going to be the major global innovation and engineering centre for us, especially for Rakuten Symphony,” Sharad Sriwastawa, co-Chief Executive Officer of Rakuten Mobile and President of Rakuten Symphony, told Moneycontrol in his first media interaction since he took over the role in August 2023.
“All the acquisitions we did in the past, including Altiostar and Robin.io, had R&D centres in India. And we have created a big lab in India, which is now being used by all business units,” he said.

Rakuten Symphony has around 4,000 employees worldwide, with the majority based in their India offices in Bangalore, Indore and Pune. Other key offices are in Germany (to support the 1&1 mobile network deployment), in Japan (to help the operations within Rakuten Mobile), and in the United States.

https://www.moneycontrol.com/news/business/...executive-12289551.html