The highlights of the FY2020 and Q4 FY2020 consolidated results are as follows.
・The Rakuten Group recorded revenue of 1,455,538 million yen in FY2020, up +15.2% year-on-year (YoY), and growth is accelerating. The revenue recorded by the Rakuten Group was the highest ever for both FY2020 and Q4 FY2020, which represents a consistent record for consecutive revenue growth since founding. At the same time, due to investment in future growth such as the accelerated rollout of base station installations in the Mobile segment, approximately five years ahead of schedule, the Rakuten Group recorded Non-GAAP operating losses of 102,667 million yen, compared to Non-GAAP operating income of 95,129 million yen in the previous fiscal year. At the same time, Non-GAAP operating income excluding profits and losses of the Mobile, Logistics and Investment businesses was 148,853 million yen, a significant increase of +37.6% YoY.
・Amid change across society, the economy and daily life accelerated by the spread of the global pandemic, the Rakuten Group leveraged the Rakuten Ecosystem of over 70 services in Japan and around the world to expand the customer base for its portfolio of services and increase cross-use between services in FY2020.
・The number of average active monthly users*1 across the Rakuten Group grew +17.5% YoY and continues to increase, as does the percentage*2 of users using two or more Rakuten Group services, which has already surpassed 70%.
・In the Internet Services segment, factors such as the successful introduction of a unified free shipping threshold for participating merchants on the internet shopping mall Rakuten Ichiba and the impact of stay-at-home consumption amid the COVID-19 pandemic brought Rakuten Ichiba’s annual gross merchandise sales (GMS) to exceed 3 trillion yen for the first time. Domestic e-commerce gross merchandise sales saw major growth, reaching 4.5 trillion yen, a +19.9% increase YoY. This trend continued in the fourth quarter of FY2020, with shopping e-commerce GMS*3 showing major growth of +45.2% YoY.
・In the FinTech segment, Rakuten Card’s credit card shopping transaction volume exceeded 11 trillion yen for FY2020 and the customer base for each FinTech service continues to grow.
・In the Mobile segment, the expansion of Rakuten’s own service coverage, along with various marketing strategies, proved successful, and the cumulative number of applications for subscription topped 2 million in December 2020. The number of customer applications as of February 8, 2021 is 2.5 million.
・For overseas businesses, the Rakuten Group transitioned business models and concentrated resources to strengthen the favorably performing open e-commerce services centered in the United States, and content businesses and marketing business based in the Americas, Europe and Asia. For FinTech businesses, in addition to Rakuten Securities’ four overseas affiliates all delivering profit, Rakuten Card and Rakuten Bank also made progress in overseas expansion. In initiatives for the future, the Mobile business is also preparing to evolve into a global telecommunications company through provision of the Rakuten Communications Platform (RCP) to telco operators and businesses around the world.
・Rakuten plans to change its trade name from Rakuten, Inc. to Rakuten Group, Inc. on April 1, 2021, introducing a new corporate structure that allows for improved agility in decision making, expansion of the Rakuten Ecosystem based on a common ID, points and branding, and acceleration of innovation across the Rakuten Group.