Rakuten Group Q1 FY2025 Financial Results Highlights

・The Rakuten Group recorded year-on-year (YoY) revenue growth in all three segments in Q1 FY2025: Internet Services, FinTech and Mobile. Consolidated revenue reached 562.7 billion yen, a record high for the first quarter, up 9.6% YoY. The FinTech business performed well due to Rakuten Card’s increased transaction volume and higher revenues for Rakuten Bank driven by rising interest rates. In addition to robust growth in domestic e-commerce and overseas businesses in the Internet Services segment, increasing Rakuten Mobile subscriptions also significantly contributed to revenue growth.

 ・The Rakuten Group recorded Non-GAAP operating losses in Q1 FY2025 of 300 million yen, an improvement of 25.1 billion yen YoY, boosted by Rakuten Mobile’s improved losses due to increased revenue, and significant profit growth in Rakuten Bank and Rakuten Payment. Consolidated EBITDA^*1, an indicator the Rakuten Group uses to assess the ability to generate cash flow, was profitable for the quarter, recording a surplus of 79.9 billion yen, a substantial increase of 51.4% YoY. Rakuten Mobile, Inc.’s quarterly EBITDA was profitable at 102 million yen, excluding property taxes, marking a positive start towards achieving full-year EBITDA profitability in 2025. 

・Rakuten Group has already secured funding for all its bonds maturing^*2 in 2025, including the replacement of hybrid bonds. The Group has a variety of funding options for interest-bearing debt maturing^*2 in 2026 and beyond, and its plans to redeem USD-denominated Undated Subordinated Notes on their first call date in April 2026 remain unchanged.

・The Internet Services segment achieved growth in both revenue and profit in Q1 FY2025, with revenue of 305.5 billion yen, up 6.9% YoY, and Non-GAAP operating income of 13.2 billion yen, up 25.8％ YoY.

・Domestic e-commerce gross merchandise sales (GMS)^*3 in the first quarter reached 1.4 trillion yen, up 3.0% YoY. The steady growth was driven by an expanding user base and an increase in GMS from EC shopping platforms, including Rakuten Ichiba and the Rakuten Rebates point reward service. Adjusted figures accounting for the impact of the leap year in 2024 on the number of days in the quarter, as well as travel and publicly-operated sport event cancellations due to snowstorms and cold weather in the period put estimated growth at 4.4% YoY. In addition, Non-GAAP operating income showed positive growth, increasing 10.0% YoY to 24.3 billion yen. For FY2025, the Group is targeting mid-to-high single-digit growth in domestic EC GMS.

・The Rakuten International business unit^*4 achieved revenue of USD 429.5 million, up 2.7% YoY, driven by substantial sales from the new Rakuten Kobo eReader devices launched in 2024 and steady growth in advertising revenue from Rakuten Viber.

・The FinTech segment delivered both significant revenue and profit growth in Q1 FY2025, with revenue of 223.6 billion yen, up 15.6% YoY, and Non-GAAP operating income of 43.9 billion yen, up 21.7% YoY.

・Rakuten Card’s shopping gross transaction value (GTV) continued to expand, reaching 6.3 trillion yen, up 12.8% YoY, driven by its expanding membership base and increased spending per customer. Despite higher financial costs due to rising market interest rates, the increase in cash outflow outside the Group was minimal. At Rakuten Payment, increased GTV contributed to revenue growth. Notably, Non-GAAP operating income for the quarter was 1.9 billion yen, up 133.2% YoY, resulting in a significant expansion of operating profit. Rakuten Payment is strengthening its position as the gateway to Rakuten’s payment services and accelerating its integration with the Group’s portfolio of FinTech services.

・Rakuten Securities’ total number of general securities accounts exceeded 12.34 million as of March 2025^*5. Rakuten Securities achieved record-high revenue of 35.0 billion yen, up 12.3% YoY, driven by its ongoing customer base expansion and diversification of revenue streams.

・Rakuten Bank’s customer accounts (non-consolidated) reached 16.83 million as of the end of March 2025, an increase of 10.4% YoY, as the customer base continues to steadily expand. With even more customers using Rakuten Bank as their primary bank account, the total balance of deposits (non-consolidated) steadily increased to 11.4 trillion yen, as of the end of March 2025^*6, an increase of 8.8% YoY. The increase in managed assets and the Bank of Japan’s policy interest rate hike improved yields and boosted interest income, leading to substantial revenue and profit growth.

・In Q1 FY2025 the Mobile segment recorded revenue of 110.7 billion yen, up 10.9% YoY. As a result of increasing Rakuten Mobile subscribers and rising ARPU, the segment recorded Non-GAAP operating losses of 51.3 billion yen, an improvement of 14.3 billion yen YoY. 

・Rakuten Mobile as an individual business recorded revenue of 87.2 billion yen, up 40.7% YoY, while Non-GAAP operating losses were 49.1 billion yen, an improvement of 17.5 billion yen YoY. Excluding the annual property taxes recorded every first quarter, EBITDA reached 102 million yen, up 20.2 billion yen YoY, with Rakuten Mobile achieving its first-ever profitable quarter since entering the mobile industry.

 ・In Q1 FY2025, the total number of Rakuten Mobile subscriptions reached 8.63 million^*7. In addition, the number of MNO (B2C) acquisitions in the quarter was up 16.9% YoY, achieving a growth rate exceeding the same period in the previous year. ARPU^*8 for the quarter was 2,827 yen, up 16 yen YoY, driven by improvements in data ARPU and other ARPU, primarily from advertising revenue. Net ARPU^*9, a key indicator for profitability, was 2,430 yen, an increase of 118 yen YoY.

Notes:
*1 EBITDA is an indicator the Rakuten Group uses to assess the ability for business activities to generate cash flow. It is calculated by adding Non-GAAP operating income to depreciation costs, etc.
*2 Refers to USD-denominated Undated Subordinated Notes on the first call date.
*3 Domestic e-commerce GMS = Rakuten Ichiba, Rakuten Travel (GTV on checkout basis), Rakuten Books, Rakuten Books Network, golf business, Rakuten Fashion, Rakuten Dream businesses, Rakuten Beauty, Rakuten 24 and other first-party daily necessities shops, Rakuten Car, Rakuten Rakuma, Rakuten Rebates, Rakuten Mart, Rakuten Ticket, cross border trading, etc. Excludes some tax-exempt businesses and includes consumption tax. From Q1/25, figures have been retroactively revised due to a review of the classification of the businesses within the Internet Services segment.
*4 Total of Rakuten Rewards (USA, Europe, Canada), Fillr, overseas Ads business, Rakuten TV, Rakuten France, Rakuten Kobo, Rakuten Viber and Rakuten Viki, etc. Note: This does not include Rakuten Symphony businesses, Taiwan e-commerce, or overseas financial subsidiaries.
*5 10.91 million accounts as of the end of March 2024.
*6 J-GAAP. Figures are rounded down to the nearest unit.
*7 Total of MNO, MVNO and MVNE subscribers, including Business Continuity Plan (BCP is a corporate plan sold for business continuity purposes) subscriptions. The number of B2B MVNO subscriptions has been reflected in the number of MVNO subscriptions as of Q3 2024.
*8 ARPU is calculated using the average of MNO subscribers at the end of the most recent quarter and the previous quarter, excluding MVNE and BCP and other contracts.
*9 Within ARPU, the cost of sales associated with the revenue uplift from Rakuten Mobile's MNO subscribers and the effect of referring customers from Group companies to the Mobile business are deducted from Ecosystem ARPU. Mobile Ecosystem Contribution is calculated as (Net ARPU x number of MNO contract subscriptions), and is recorded in Rakuten Mobile, Inc.'s income statement after revenue and operating expenses. For more information on Mobile Ecosystem Contribution calculations, please refer to the Consolidated Financial Reports.