The highlights of the Q1 FY2021 consolidated results are as follows.
- The Rakuten Group recorded revenue of 391,513 million yen for Q1 FY2021, up 18.1% year-on-year (YoY), and growth is accelerating. This marks the highest revenue ever recorded by the Rakuten Group in the first quarter of a fiscal year.
- At the same time, due to planned investment in future growth such as the accelerated rollout of base station installations in the Mobile segment, which is proceeding approximately five years ahead of schedule, the Rakuten Group recorded Non-GAAP operating losses of 31,585 million yen, compared to Non-GAAP operating losses of 18,136 million yen in the same period of the previous fiscal year.
- Non-GAAP operating income excluding profits and losses of the Mobile, Logistics and Investment businesses was 41,914 million yen, a significant increase of +4% YoY.
- The Rakuten Group leveraged the Rakuten Ecosystem, centered on membership, data and the Rakuten Points loyalty program, to promote cross-use between services and increase customer retention, as well as minimize risks by diversifying businesses and maximize added value by creating synergy between businesses.
- The number of Rakuten Ecosystem users continues to grow, as does the percentage*1 of users using two or more Rakuten Group services, which has increased to 73.5%.
- At the same time, the number of average active monthly users*2 across the Rakuten Group grew by +14.0% YoY.
Internet Services segment
- In the Internet Services segment, factors such as improved usability through the successful introduction of a common free shipping threshold for participating merchants on the internet shopping mall Rakuten Ichiba and increased consumer demand for online shopping due to the COVID-19 pandemic led to continued transaction volume growth to Rakuten Ichiba and other services. As a result, shopping e-commerce gross merchandise sales (GMS)*3 increased +33.9% YoY in Q1 FY2021.
- In the Logistics business, Japan Post Co., Ltd. and Rakuten announced in April 2021 that they will establish a new joint venture to which Rakuten’s logistics business will be succeeded, including the labor-efficient, automated logistics centers invested in and developed by Rakuten. The new company will focus on driving improved efficiency through the creation of shared logistics centers and shared delivery and pick-up systems.
- The membership base for each service continued to steadily expand, and both revenue and profit increased compared to the same period of the previous fiscal year.
- In January 2021, Rakuten Bank became the first online bank in Japan to reach 10 million accounts*4, and the number of customers using their account as the main account for their daily lives is increasing. Additionally, Rakuten Securities reached 250,000 accounts opened in a single month for the first time in March 2021, now ranking second*5 in the industry in terms of number of accounts as of the end of March 2021. In addition, the number of Rakuten Card members exceeded 22 million in February 2021.
- The strong performance of Rakuten UN-LIMIT VI — Rakuten Mobile’s new pricing plan announced in January 2021 — led to an acceleration in the number of customer applications. As a result, the total cumulative number of customer applications reached 4.1 million as of May 11, 2021.
- In addition, expansion of the Rakuten Mobile service area has progressed steadily, and Rakuten Mobile has achieved its target of 80% population coverage for 4G as of the end of March 2021.
- The Rakuten Communications Platform (RCP) is a cloud-native platform which enables carriers and enterprises around the world to easily build secure and open mobile networks quickly and at low cost. Multiple global customers are already using parts of the platform in their network and development on the platform as a whole continues to make strong progress.
- In order to achieve sustainable growth, strengthen the company’s financial base and increase shareholder value, in March 2021, Rakuten issued new shares and conducted a third-party allotment of treasury stock to Japan Post Holdings Co., Ltd., Image Frame Investment (HK) Limited and Walmart, Inc., as well as two asset management companies owned by members of Rakuten Group Chairman and CEO Mikitani’s family, raising approximately 240 billion yen. In April, in order to diversify financing methods, expand its investor base and further enhance financial soundness, Rakuten also issued approximately 320 billion yen in perpetual subordinated notes denominated in US dollars and euros (with an interest deferral clause).
- At the same time as the third-party allotment outlined above, Rakuten also announced a capital and business alliance with the Japan Post Group that aims to expand and strengthen collaboration across the existing field of logistics to mobile, digital transformation and other areas.