2. Reasons for the Differences
In the fiscal year ended December 31, 2024, all segments, including Internet Services, FinTech, and Mobile, recorded increased revenue, resulting in total revenue of 2,279,233 million yen (up 10.0% year-on-year).
In terms of operating income, the Internet Services segment, profitability improved due to changes in marketing strategies, etc. The International Business Unit, which operates overseas Internet Services, achieved full-year profitability, significantly contributing to the increase in segment profit. In the FinTech segment, efforts to expand the customer base and transaction volume across services led to further improvements in segment profit. In the Mobile segment, efficient network quality improvements utilizing both owned and partner networks, along with strengthened marketing activities, resulted in an increase in subscribers and revenue. Consequently, in December 2024, the standalone monthly EBITDA*1 of Rakuten Mobile, Inc. turned positive for the first time since entering the MNO business, leading to a significant reduction in segment losses. As a result, Non-GAAP*2 operating profit improved by 160,089 million yen year-on-year to 7,048 million yen. Additionally, a remeasurement gain of 106,906 million yen was recorded as other income due to changes in the accounting treatment of AST SpaceMobile, Inc. shares, among other factors, which lead to IFRS operating profit turning positive at 52,975 million yen, an improvement of 265,832 million yen compared to the previous fiscal year.
On the other hand, total financial income and expenses decreased by 36,513 million yen year-on-year due to an increase in gains on valuation of derivatives, and interest expense, etc. compared to the previous fiscal year. Additionally, considering the business environment and future performance trends, a partial reversal of deferred tax assets was conducted, resulting in an increase in corporate income tax expenses by 33,968 million yen year-on-year. As a result, the net loss attributable to owners of the parent was 162,442 million yen, an improvement of 177,031 million yen compared to the previous fiscal year.
Notes:
*1 Calculated by adding depreciation and amortization expenses, etc. to Non-GAAP operating income (Note 2).
*2 Calculated by adjusting operating income based on IFRS for nonrecurring items and other adjustment items determined by the Group.
