Rakuten Group, Inc. (Head Office: Setagaya-ku, Tokyo, Chairman and CEO: Hiroshi Mikitani, hereinafter “the Company”) announces that it expects to record a corporate income tax expense related to a reversal of a portion of its deferred tax assets and an impairment loss in its consolidated financial results for the fiscal year ended December 31, 2024 (IFRS).
1. Details of Partial Reversal of Deferred Tax Assets
Taking into account the business environment, future performance trends, etc., and after careful consideration of the possibility of recovering deferred tax assets in the future, the Company anticipates recording a corporate income tax expense related to the reversal of approximately 112,272 million yen in deferred tax assets in our consolidated financial results for the fiscal year ended December 31, 2024 (IFRS).
2. Details of Impairment Loss
After carefully considering the future recoverability of fixed assets related to the Group's general insurance business, following a review of the development plan for the core system, the Company expects to record an impairment loss of approximately 9,662 million yen in our consolidated financial results for the fiscal year ending December 31, 2024 (IFRS).
3. Impact on Financial Results
The impairment loss in 2. is included in other expenses in the consolidated financial results for the fiscal year ending December 2024 (IFRS). Nonrecurring items, including this loss, amounted to 68,658 million yen due to the impact of the remeasurement gains from a change in the accounting treatment of AST SpaceMobile, Inc. shares. As a result, IFRS operating income was 52,975 million yen (compared with an IFRS operating loss of 212,857 million yen in the fiscal year ended December 31, 2023), and the net loss attributable to owners of the Company was 162,442 million yen (compared with a loss of 339,473 million yen in the fiscal year ended December 31, 2023), due to the impact of the reversal of deferred tax assets in 1. In addition, in the fiscal year ended December 31, 2024, IFRS operating income achieved a surplus for the first time in five years since the fiscal year ended December 31, 2019.