Rakuten wesentlich besser als Rocket

FY2021 Q3 Financial Highlights

Revenue increased by double digits YoY due to strong growth in domestic
e-commerce businesses such as Rakuten Ichiba and Rakuten Seiyu Netsuper.

Q3/21 Consolidated Results Summary
(JPY bn)

Revenue 361.4 406.9 +12.6%

Non-GAAP Operating Income -28.7 -57.7 -29.1

Non-GAAP Operating Income Excluding Mobile, Logistics and Investment Business 41.2 48.0 +16.5%

IFRS Operating Income -39.8 -7.5 +32.3

https://global.rakuten.com/corp/investors/

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mit Hilfe von Rakuten, die auch im Text erwähnt werden, off topic sein soll, weiß nur der Moderator.  

Das ist für mich die entscheidende Zeile:
"Non-GAAP Operating Income Excluding Mobile, Logistics and Investment Business 41.2 48.0 +16.5%"

Ohne die Bereiche Mobile und Logistics, in die massiv investiert wird und/oder im Aufbau Begriff sind, und den diesmal außerordentlichen Gewinn aus Investments hätte man einen Gewinn von 48 Milliarden Yen, also ca. 450 Millionen US-Dollar im 3. Quartal erreicht. Das sind hochgerechnet aufs Jahr 1,8 Milliarden US-Dollar Gewinn.

Und jetzt kann man die Frage stellen: Was sind 1,8 Milliarden US-Dollar bei diesen Geschäften, die Rakuten betreibt, wert? Ein KGV von 25 würde ich Bereichen wie E-Commerce, Advertising, Fintech usw. jedenfalls zubilligen, was schon allein auf 45 Milliarden US-Dollar hinausläuft.

Und einen Wert haben die Verlustbringer, in die schon massiv investiert wurde, wie z.B. Rakuten Mobile, selbstverständlich auch.  

Ich warte schon seit 7:00 Uhr dass die endlich kommen.

Sind wohl noch viel schlechter als eh schon erwartet.

Zumindest der Kurs wird wohl bald wieder im 3stelligem YEN-Bereich auftauchen.

Was für ein Trauerspiel dieser Schrott.  

Revenue grew +13.3% YoY, even after last year’s increased demand for e-commerce and the boost
provided by the Go To Travel Campaign.

Operating Income grew +39.0% YoY due to growth of
existing businesses and the succession of the Logistics business to JP Rakuten Logistics.


Rakuten Ichiba continued to grow steadily. Growth continues even after factoring in the increased demand arising from stay-at-home trends that began last year.

Ratio of users who made a purchase on Ichiba in Q2/21 and repeated in Q3/21: 75%

Increased customer loyalty has led to increased cross-use with other Rakuten services.

https://global.rakuten.com/corp/investors/

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New and returning customers who used Ichiba in 2020 are here to stay.

Ratio of users who made a purchase on Ichiba in Q2/21 and repeated in Q3/21 is approx.75%.

Purchase frequency per user continues to increase along with the increased number of users making purchases.

Rakuten Ichiba + Other E-Commerce Services Cross-Use Expansion:
Q3/21 Rakuten Ichiba × Rakuten Fashion Users YoY Cross-Use Growth = +30.2% YoY
Q3/21 Rakuten Ichiba × Rakuten Seiyu Netsuper Users YoY Cross-Use Growth = +37.1% YoY

https://global.rakuten.com/corp/investors/

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https://www.irwebcasting.com/211111/52/f56a89cad0/  

Maintaining Credit Ratings by Domestic Rating Agencies

In October 2021, JCR and R&I announced that Rakuten Group’s credit rating would be maintained.

Long-term  A(JCR)   A(R&I)

Short-term J-1 (JCR)  a-1 (R&I)

Release date Oct 4, 2021 Oct 15, 2021

global.rakuten.com/corp/investors/

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21-D-0661 October 4, 2021

Japan Credit Rating Agency, Ltd. (JCR) announces the following credit rating. Rakuten Group, Inc. (security code: 4755)

Long-term Issuer Rating: A

Outlook: Negative

Bonds: A
Bonds (Dated subordinated bonds): BBB+

Bonds (Undated subordinated bonds): BBB+

CP: J-1

Rationale

(1) Rakuten Group, Inc. (the "Company") is an Internet services company, which has Internet Services Segment, including Rakuten Ichiba (Domestic EC) and Rakuten Travel (travel reservation), FinTech Segment, which is handling credit cards, banking, securities, etc., and Mobile Segment, such as mobile network operator business (MNO). The Company forms Rakuten Ecosystem by providing various services.

(2) There have been no changes in its solid operation bases for existing businesses such as Domestic EC and FinTec. Driven by strong consumer demand for EC, the Domestic EC keeps growing. Each FinTech business is also steady with risk controlled appropriately. They are differentiating themselves from peers by offering various financial and other services as well as their own point programs. Given that the high earnings capacity of the existing businesses would be maintained for the time being, JCR has affirmed the ratings on the Company. MNO in a launching phase would be a large burden for the Company's earnings and finances, but the Company is expanding its equity capital and raising necessary funds through capital expansion and others. If the business faces a serious challenge in the future, JCR may downgrade the ratings. Hence the Negative rating outlook is unchanged. JCR will pay attention to progress in the number of telecommunications contracts, users' data usage, capital investments and profits and losses.

(3) For MNO, the Company has built a completely virtualized cloud native network, a trailblazing technology. Thanks to the high cost competitiveness, the Company is able to offer fee plans more competitive than rivals. As MNO will stay in a phase requiring up-front expenditure and funds for the time being, the Company will carry a heavy financial burden from it. The burden of MNO has been alleviated to a certain extent thanks to progress in equity capital expansion and appropriation to necessary funds, as a result of a recent capital increase through third-party allotment, disposition of treasury shares and issuance of hybrid shares. It is highly likely that measures to mitigate the financial burden will be implemented accordingly by using its assets and businesses from now on. Competition in the domestic mobile phone market has been increasing fierce as each company is launching new reasonable plans in succession. The Company's construction of transmission stations is currently somewhat behind schedule due to chip shortage. JCR sees that the Company needs to accelerate acquisition of new contracts by speeding up construction of the stations.

(4) Regarding Domestic EC, with the continuing trend of increasing consumers' EC use, the gross transaction value is growing. Since EC still accounts for a low percentage of the domestic retail market, there is considerable room for expansion. Cross-use between Rakuten Ichiba and other EC services is also steady. The Company has strengthened its own logistics network to meet the growing EC demand, but in July 2021 it established a logistics joint venture with Japan Post Co., Ltd. (Japan Post). The Company's logistics business will be succeeded by the new JV. The Company plans to build a more efficient logistics network by utilizing Japan Post's delivery infrastructure.

(5) In the FinTech Segment, Rakuten Card operates various businesses under its umbrella as an operating holding company, including banking, securities and insurance. In addition, Rakuten Payment, Inc. is involved in the settlement business. Core companies in the FinTech Segment, Rakuten Card Co., Ltd., Rakuten Bank, Ltd. (Rakuten Bank) and Rakuten Securities, Inc., have strong customer acquisition capabilities against the backdrop of the Rakuten Ecosystem, and have 2 / 3 https://www.jcr.co.jp/en/ a strong market position and competitiveness in the industry. With the business expanding even in the COVID-19 pandemic, stable profit contribution can be expected to continue going forward as well.

(6) For the six-month period through end-June 2021 (cumulative total), the Company recorded a revenue of 793.6 billion yen (up 16.9% year on year) and an operating loss of 100.8 billion yen. Although the Internet Services and FinTech Segments were solid, the growing losses in MNOs in the Mobile Segment became a burden. In order to make MNO profitable, it is necessary to acquire a certain number of contracts and realize an increase in revenue. The Company is also working on external sales of communications technologies, and JCR is paying attention to results going forward. On the financial front, in response to the burden of MNO, the Company issued new shares through a third-party allotment in March 2021 and hybrid bonds in April 2021. On preparations for Rakuten Bank's stock listing as well as the consideration of Rakuten Symphony's incorporation and capital and business alliance, if realized, they will highly likely support the Company's financials. There are many financial-related assets and liabilities. The ratio of total equity attributable to owners of the Company to total assets was 7.9% as of end-June 2021. However, the ratio of ownership of nonconsolidated unit that primarily operates Rakuten Ichiba and holds the Group's shares is at a reasonable level of a little less than 28% at the same date.

Hiroyuki Chikusa, Akihisa Motonishi

https://www.jcr.co.jp/download/...9caf49/21d0661_1014RakutenGroup.pdf
 

 

Rakuten Symphony marks independence with edge products launch, more executive hires

Nov 12, 2021 | Daniel Beazer

Rakuten Symphony, newly hived off from its parent Rakuten, has given the market an indication of future strategy by announcing plans to develop an edge device in tandem with Juniper and Intel.

The portable hardware, dubbed Symware by the trio, is aimed at simplifying 5G cell deployments. It will tackle one of the major problems associated with disaggregated Open RAN deployments, such as how to provide consistent routing across different physical and virtual architectures.

https://www.edgeir.com/...oducts-launch-more-executive-hires-20211112
 

[WATCH] Q3 FY2021 Results: CEO Mickey Mikitani on how recent moves in fintech, mobile and more are building the foundation for growth

3 days ago

On November 11, Rakuten live-streamed its 2021 third quarter financial results from across the Rakuten Group. Leaders from business units representing the company’s diverse portfolio of more than 70 services worldwide presented highlights from the quarter (details at end of article) and offered a glimpse of what’s to come.

To share his perspective on an eventful quarter, which saw the launch of Rakuten Symphony, announcement of preparations for the listing of Rakuten Bank, and Rakuten-led mass vaccination initiatives across Japan, Rakuten Group chairman and CEO Mickey Mikitani sat down for a Q&A with Taro Ishihara, Chief Analyst at Daiwa Securities. Below are some of the highlights.

For the launch of Rakuten Symphony, what kind of scale are you considering for allocation of personnel and capital? What kind of partner do you envisage for capital and business alliances?

Rakuten Symphony is disrupting the norms of the global mobile industry and beginning to establish itself as a key player. When we take part in external events, we can feel the high level of interest in Rakuten Mobile and development of a common understanding that the technology we’re using is the way of the future. Even as other companies try to catch up to us, Rakuten Symphony’s biggest competitive advantage is the validation provided by Rakuten Mobile’s experience. And the potential market is estimated to reach 15 trillion yen in 2025. The customer contracts we already have in place are on the scale of hundreds of billions of yen.

Rakuten Symphony is aiming to offer the most essential network infrastructure, from our base in Japan. We are seeing demand for this from numerous customers. As for the business model, we’re able to take responsibility for the project end-to-end like we are in Germany, or we can offer parts like the base station software or hardware. We’re also building up our team now.

Are there bottlenecks in receiving orders for future projects? Are there currently any resources you’re lacking? And will you be able to address any shortages?

We’re able to sell software exclusively, or we can undertake entire projects end-to-end. What makes this different from selling other software is that minor tuning is required, in line with regulatory environments which differ by frequency band and by country. We are also working together with Accenture and Tech Mahindra. We provide the software and the technology, and leave the actual implementation to them. This is a big business opportunity for them as well, and they are investing considerable people resources.

Have you already received inquiries for a second or third large scale project?

We have already agreed to proofs of concept with global mobile operators, and there are several projects in the testing stages operating dozens of base stations. We’re also providing parts of the network to customers. I believe the number of end-to-end projects will increase in the future but as they require considerable time and effort, we will need to balance these with sales of software alone in order to effectively manage personnel and resources. We will select projects appropriately.

Moving to e-commerce, I have something of a tough question. Although profitability in improving, as competition in the space continues to intensify, there is still concern that investment here might not be profitable. Do you think that, ultimately, your company’s profitability will improve, so that big companies which have invested will see improved profits? Or, although profitability is low, do you think e-commerce is important as the gateway to fintech and mobile services? Please explain your thinking on the positioning of e-commerce.

Although we do not disclose the profitability of individual services, Rakuten Ichiba has achieved a considerable level of profitability. Even during the pandemic, profit growth rates have exceeded revenue growth, and economies of scale are working. We’re not feeling as much pressure from the competition as everyone seems to think.

That said, investment in logistics has been a huge issue up until now. I did believe this was an unavoidable requirement but our joint venture with Japan Post is addressing this issue, becoming a very large step toward improving profitability.
Annual domestic e-commerce GMS is now approaching 5 trillion yen, and we are thinking about how to take that to 10 trillion yen.

Next, to fintech. You announced plans to list Rakuten Bank. Could you explain now the background of your decision to take the bank public?

Banks fall under the jurisdiction of the Financial Services Agency — they’re part of a highly regulated industry. At the same time, Rakuten Bank supports the Rakuten Group through securitization. Rakuten Bank requires sufficient capital, and the higher the capital levels, the more profitable it can be. As the Rakuten Group is also investing in other businesses, we decided to list the bank and take in capital from external sources in order to drive further profitability with the capital increase.

On to the balance sheet. It’s being impacted by heavy investment in mobile. Please tell us about your ideal capital adequacy ratio and financial strategies.

That’s another reason why we chose this timing to announce the potential listing of Rakuten Bank. While we think about how to raise capital for each individual business, we can also secure funds for growth by solidifying the capital of Rakuten Group. In terms of capital strategy, listing Rakuten Bank will be a historical turning point.

Please tell us about the outlook for future earnings of your overseas businesses.

We have seen both successes and failures among our overseas businesses. We’ve properly evaluated those failures, and chosen to either sell or close them down. However, there are things you can’t fully understand without trying. Rakuten Viber and Rakuten Viki are profitable or close to profitable, and will make an appropriate contribution to future profit. If we look at Rakuten Kobo across the globe, the customer’s only choice is Kobo or Amazon. In several countries Kobo has a large market share and is close to profitability. Rakuten Rewards in the U.S. contributes significantly to profits. As we see each business move toward profitability, we will carefully foster that direction and work to create a structure to deliver profitability across our entire overseas business.

I think there are many business opportunities for DX (digitalization transformation) support in the development of real services, but does Rakuten support that idea?

We are implementing a DX project with [prominent Japanese supermarket chain] Seiyu. We aim to improve payments at stores and make all systems DX compatible. We are also expanding this not only at Seiyu, but also with other retailers. We will create an AI-supported platform to control online marketing, payment integration, data-driven purchasing, price control, etc., and deploy it in various places. Japan does not have an e-commerce penetration rate of 30-40% like China, so it is important to have a hybrid model. In that respect, it is significant that Rakuten Card’s market share target is 30%. With offline purchases, our credit card business earns a fee, and with online purchases, we book revenue. We also aim to develop our advertising business to align across online and offline. I think we can also become a future leader in providing the necessary mobile platform.

https://rakuten.today/blog/...nancial-results-mikitani-interview.html

 

But the figure comes as no real surprise. The losses have been gradually mounting at Rakuten Mobile, and the company made it clear earlier this year that they would continue for at least a few quarters. Speaking at the Q1 results presentation in May, Rakuten Mobile president Yoshihisa Yamada predicted that losses will “decline gradually” from 2022 onwards, with a target of breakeven in fiscal 2023.

The global chip supply shortage is doing little for Rakuten’s rollout plans, but it still expects its figures to improve next year. However, it is now talking about the second quarter of next year.

“In line with the continued expansion of the Rakuten Mobile network service area, which is proceeding ahead of schedule, progress has been made in 39 prefectures since October to switch from the roaming service to Rakuten’s network,” the company said. “As the Rakuten service area continues to expand, improvement in earnings is expected from Q2 FY2022 onwards.”

Until then, it seems we’re looking at more of the same from Rakuten Mobile.

https://telecoms.com/512126/...mobile-loses-close-to-1-billion-in-q3/
 

in den Kernbereichen können das zwar momentan noch nicht vollständig ausgleichen, sind aber ein Gegengewicht - und werden es immer mehr.

"Excluding profits and losses of the Mobile and Logistics businesses which require investment for future growth and the Investment business which is considerably impacted by market volatility, Non-GAAP operating income was 48,008 million yen, a significant increase of 16.5% YoY."

https://rakuten.today/blog/...nancial-results-mikitani-interview.html

Wenn Rakuten Mobile wie vorgesehen in 2023 die Gewinnzone erreicht, stehen diese 450 Millionen Gewinn der Kernbereiche - gesteigert um das Gewinnwachstum der Kernbereiche - als Quartalsgewinn von Rakuten im Raum. Und anschließend kommen dann auch die Gewinne des Mobile-Bereichs dazu. Daher  kann ich mir bereits einen Gewinn zwischen 2,5 und 3 Milliarden US-Dollar in 2024 vorstellen. Wann das die Märkte im Kurs zu antizipieren beginnen, lässt sich allerdings schwer vorhersagen.



 

Rakuten Domestic EC GMS 2-year CAGR = +16%

Industry average 2-year CAGR = -1%

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Warriors and Rakuten prolong jersey sponsorship deal

Basketball - 12 Nov 2021

The Golden State Warriors, of North American basketball’s NBA, and Rakuten, the Japanese e-commerce giant, have today extended their lucrative jersey patch sponsorship agreement.

Under the extended partnership, Rakuten will continue to have several other sponsorship designations with the Warriors including as the team’s official e-commerce partner, official video-on-demand partner and official affiliate marketing partner.

In addition, the company’s global mobile voice messaging service, Rakuten Viber, remains the Warriors' official instant messaging and calling app partner, and Rakuten Kobo is the franchise’s official e-reader partner.

As it did last season, Rakuten will again be the presenting partner of a season-long campaign tied to the Warriors’ on-court jerseys while the partnership will additionally include logo representation in the Warriors travelling party and marketing elements, such as signage in the team’s Chase Center arena and other digital, social and radio assets.

Brandon Schneider, Warriors president and chief operating officer, said: "Dating back to 2017, we've established an incredible partnership with Rakuten.

"Rakuten understands the evolving trajectory of the sports business industry, and together we will continue to enhance the player and fan experience for Warriors fans around the world."

https://www.sportcal.com/News/FeaturedNews/137028  

For Japan’s mom and pop shops, Rakuten Pay is more attractive than ever

5 days ago

Going cashless has never been easier for small businesses in Japan.

Since 2012, Rakuten Pay has provided retail shops and restaurants with a simple, convenient solution for cashless payments. For consumers, the Rakuten Pay app allows shoppers to simply show or scan a barcode or QR code to make their purchase.

Barcode and QR code payments have become ubiquitous in Japan over the past half decade, and Rakuten Pay has led the charge. Rakuten’s offering has always been a popular choice for merchants thanks to its synergy with the Rakuten Ecosystem and its swift transfers, which can be as quick as the very next day.

But as of October 2021, Rakuten has made the deal sweeter than ever: Rakuten Pay is effectively free for new merchants to use for the next 12 months.

Nothing sweeter than free

“Rakuten Pay already serves many convenience stores, supermarkets, pharmacies and other locations that support the lives of everyday people,” says Tomoyuki Tsuchida, manager of Empowerment Sales Group No.1 in Rakuten Pay’s Business Division. “Last year we even implemented support for (rail card/transportation e-money) Suica, so we’re even covering people’s transportation needs.”

In total, Rakuten Pay can be used at some five million locations around Japan — an astonishing number that covers many major retail chains and all of the country’s numerous convenience stores. But the Rakuten Pay team also sees significant value in how its product can be used by smaller businesses. “We already serve a good number of small to medium-sized businesses, but there are still many who have yet to try the service.”
It is exactly these merchants that the Rakuten Pay team is targeting with their new campaign. New signups from small to medium sized merchants (those logging annual sales of one billion yen or less, or around USD nine million dollars) will have all fees returned to them as cashback until the end of September 2022.
“Cashless payment services like Rakuten Pay can create new avenues for acquiring customers, allowing merchants to streamline their businesses even further,” Tsuchida explains.

“That’s why we want to give merchants the opportunity to use Rakuten Pay with no burden on their side, so that they can experience the value and convenience of code payments for themselves.”
Leading the cashless charge

The rise of code payments has contributed significantly to Japan’s long march to cashless freedom. Since 2016, the in the industry has welcomed countless new players, yet Rakuten Pay has remained a favorite for both merchants and shoppers.

“It’s very easy to get started with the app,” Tsuchida explains. “Shoppers need only sign in with their Rakuten ID and choose how they want to pay, and they’re ready to start shopping.”

In addition to credit cards such as the perennially popular Rakuten Card, users can even make use of the Rakuten Points they have earned through using any of dozens of online services Rakuten operates in Japan.
“By implementing Rakuten Pay, merchants are not only giving their customers more options, but they can also expect business from loyal Rakuten members,” Tsuchida explains. This effectively connects them to the Rakuten Ecosystem — which is firmly anchored by the Rakuten Points loyalty program — enabling even smaller merchants to provide shoppers with loyalty benefits.

“Meanwhile, the balance can be deposited into the merchant’s bank account as early as the very next day, allowing them to maintain a revenue stream similar to that of cash.”

Empowering lasting change

Rakuten has decades of experience working with Japan’s smaller businesses. Since the 1990s, Rakuten Ichiba has been actively encouraging brick and mortar stores all over the country to get online, and other services like Rakuten Travel have followed in its footsteps.

In a rapidly changing payment landscape, the motive behind Tsuchida’s and his team’s ambitious campaign is clear. “We want to make sure Japan’s small and medium-sized businesses are not left behind by the cashless movement.”

https://rakuten.today/blog/...than-ever-for-japans-mom-pop-shops.html  

Rakuten Domestic Travel GTV 2-year CAGR = - 14%%
Industry average 2-year CAGR = - 56%

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Rakuten Domestic Travel GTV 2-year CAGR = - 14%%
Industry average 2-year CAGR = - 56%

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Rakuten Ad Business Revenue 2-year CAGR = + 16%%
Industry average 2-year CAGR = - 9%

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https://www.lightreading.com/open-ran/...t-for-open-ran/d/d-id/773443  

Rakuten tunes up for an Open RAN unit IPO or stake sale

By Ray Le Maistre
Oct 1, 2021

https://www.telecomtv.com/content/open-ran/...po-or-stake-sale-42537/  

Rakuten Group, Inc. (the “Company”) is pleased to announce that it has been selected for the second consecutive time as an index component of the 2021 Dow Jones Sustainability World Index (hereinafter “DJSI World Index”). The Company has also been selected as a component of the Dow Jones Sustainability Asia Pacific Index for the third consecutive year.

The Company's efforts and proactive disclosure of information regarding its environmental and social practices, which led to the selection in the DJSI World Index, were recognized across a broad range of categories: risk and crisis management, brand management, customer relationship management, environmental reporting, climate strategy with notably the participation in the RE100 initiative since 2019, social reporting, and corporate citizenship and philanthropy.

The Company has also been listed as a component of other major ESG indices including FTSE4Good Index Series, FTSE Blossom Japan Index, MSCI Japan Empowering Women Index (WIN), and S&P/JPX Carbon Efficient Index.

The Company’s mission is to “empower people and society through innovation”, and has been working towards the realization of a sustainable society. The Company will continue to take actions related to ESG issues, while communicating with stakeholders with transparency by disclosing company information in a timely and appropriate manner.

https://global.rakuten.com/corp/news/press/2021/1116_01.html  

 

Rakuten Card Shopping GTV 2-year CAGR = + 25%%

Industry average 2-year CAGR = + 4%

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11 NOV 2021

Rakuten Mobile chairman and CEO Mickey Mikitani expressed confidence its near nationwide coverage, strong user adoption and rising data usage position it for rapid growth next year and hit its target of reaching profitability by end-2023.

Mikitani said subscribers nearly doubled year-on-year to 4.11 million, noting if it can continue at this rate, “I don’t see any problem going forward”.

He expects roaming costs to decline from the beginning of April as it moves to its own network, which now covers some 94 per cent of the population. “Switching to our network will not only cut costs, but also increases ARPU and means data usage will increase.”

The chairman explained the group has three objectives for Rakuten Mobile: make sure the standalone business is profitable, ensure it contributes to the group’s overall ecosystem and to create a scalable model for selling its software and platform, via its Rakuten Symphony unit.

The company estimates the addressable open RAN market will reach $150 billion in 2025, with Mikitani stating it wants the company to be the frontrunner in this business. It currently is conducting tests with six clients in the US, and four each in Europe and Asia.

https://www.mobileworldlive.com/featured-content/...ite-widening-loss