- The Rakuten Group recorded revenue of 402,158 million yen for Q2 FY2021, up +15.8% year-on-year (YoY), and continues to deliver strong growth. This marks the highest revenue recorded by the Rakuten Group in the second quarter of a fiscal year.
- At the same time, due to strategic investment in future growth such as the accelerated buildout of 4G base station installations in the Mobile segment that is about five years ahead of schedule compared to the plan submitted to the Ministry of Internal Affairs and Communications, the Rakuten Group recorded Non-GAAP operating losses of 59,539 million yen, compared to Non-GAAP operating losses of 32,587 million yen in the same period of the previous fiscal year, and Rakuten Mobile achieved 90% population coverage for 4G as of the end of June 2021. In addition, as new customer acquisition is progressing steadily, the revenue contribution from user mobile fees is gradually increasing in line with the end of the one-year-free campaign, and future improvements in revenue are expected.
- Excluding profits and losses of the Mobile, Logistics and Investment businesses, non-GAAP operating income was 46,852 million yen, a significant increase of +35.6% YoY.
- By leveraging the Rakuten Ecosystem, centered on membership, data and its points loyalty program, Rakuten Group is promoting cross-use between services and increasing customer retention, as well as minimizing risks through the diversification of businesses and maximizing the added value of synergy generated between businesses.
- Rakuten Ecosystem user numbers continue to demonstrate sustained growth, as does the percentage*1of users using two or more Rakuten Group services, which has increased to 73.9%.
- Average active monthly user numbers*2across Rakuten Group services also showed solid growth of +12.5% YoY, even with the added impact of increased stay-at-home demand for online shopping services that began a year ago.
Internet Services segment
- Domestic e-commerce gross merchandise sales (GMS) continued to see major growth, achieving double-digit growth of +12.2% YoY even when compared to the sharp increase in GMS in the same period of last year that was driven by stay-at-home consumption demand amid the COVID-19 pandemic.
- In the Internet Services segment, internet shopping mall Rakuten Ichiba and other services saw improvements in user loyalty due to initiatives to improve user convenience such as the successful introduction of a common free shipping threshold for participating merchants on Rakuten Ichiba, as well as increased consumer demand for online shopping due to the pandemic.
- Rakuten Travel achieved GMS improvements compared to the same period last year by implementing initiatives including those aimed at promoting safe travel.
- Succession was completed of Rakuten’s logistics business to JP Rakuten Logistics, Inc., a new joint venture established by Rakuten and Japan Post. The new joint venture will become an equity method affiliate of Rakuten beginning in Q3 FY2021.
- The membership base for each service continued to steadily expand, and both revenue and profit in Q2 FY2021 increased compared to the same period of the previous fiscal year.
- In July 2021, Rakuten Bank became the first online bank in Japan to reach 11 million accounts*3, and the number of customers using their account as the main account for their daily lives is increasing.
- The number of Rakuten Cards issued*4 surpassed 23 million in June 2021. Rakuten Card shopping Gross Transaction Volume (GTV) achieved significant growth of more than +30% YoY, and Rakuten Card's overall GTV market share*5 is now more than 20%.
- Rakuten Securities has succeeded in attracting investment beginners through a variety of initiatives leveraging the Rakuten Ecosystem. In May 2021, the number of general securities accounts exceeded six million, reaching 6.24 million accounts at the end of June 2021. Additionally, Rakuten Securities achieved strong growth of +20% YoY growth in operating revenue.
- In the Insurance business, in addition to strong performance of online sales, new contract acquisitions are steadily increasing for both life and non-life insurance services as some face-to-face sales have recovered from pandemic-driven limitations. Additionally, new subscribers*6 due to cross-selling increased 14-fold since the Comprehensive Insurance Center launched two years ago, contributing to an increase in profit of more than +20% YoY for the Insurance business.
- In the mobile carrier service, new customer acquisition is progressing steadily, and in line with the end of the one-year-free campaign, the revenue contribution from user mobile fees is gradually increasing.
- The percentage of contracts from Mobile Number Portability (MNP) transfers and those migrating from the MVNO business – which tend to have high data consumption and low churn rates – continues to increase. Going forward, this is expected to contribute to increased Average Revenue Per User (ARPU) and lifetime value.
- In addition, expansion of the Rakuten Mobile service area has progressed steadily, and Rakuten Mobile has achieved 90% population coverage for 4G as of the end of June 2021.
- Rakuten launched full-scale commercial service with the world's first fully virtualized cloud-native Open RAN mobile network*7 as a new entrant in Japan. As announced in August 2021, the Germany-based major telecommunications provider 1&1 has selected Rakuten as their general contractor to build their mobile network using the Rakuten Communications Platform (RCP), 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. 1&1 will now benefit from this experience and expertise.
- In April 2021, Rakuten issued approximately 320 billion yen in perpetual subordinated notes denominated in US dollars and euros (with an interest deferral clause) in order to diversify financing methods, expand its investor base and further enhance financial soundness. Rakuten plans to allocate the funds raised chiefly to its mobile carrier business for infrastructure investment. In addition, Rakuten Mobile, Inc. is moving forward to raise funds through sale-and-leaseback and the securitization of mobile service fee receivables.