Rakuten Group FY2024 and Q4 FY2024 financial results highlights

• The Rakuten Group achieved all three financial targets set at the beginning of FY2024: Full-year Non-GAAP operating income profitability on a consolidated basis, EBITDA profitability for Rakuten Mobile on a monthly basis, and self-funding at the Group level. For FY2025, the Group aims to expand its consolidated Non-GAAP operating income profitability and achieve full-year EBITDA profitability for Rakuten Mobile.
   
• Consolidated revenue for FY2024 achieved double digit growth, reaching a record high of 2.3 trillion yen, up 10.0% year-on-year (YoY), and marking 28 consecutive years of revenue growth. All three segments – Internet Services, FinTech and Mobile – achieved YoY revenue growth for FY2024.
   
• In addition to revenue growth, significant improvements in Rakuten Mobile’s profitability and cost optimization successes at the Group level contributed to consolidated Non-GAAP operating income of 7.0 billion yen for FY2024, an improvement of 160.1 billion yen YoY, and IFRS operating income of 53.0 billion yen, an improvement of 265.8 billion yen YoY. The Group achieved full-year consolidated profitability for the first time in five years – since FY2019. Consolidated EBITDA*1 for FY2024 was 326.0 billion yen, up 120.0% YoY.
   
• In December 2024, Rakuten Mobile achieved monthly EBITDA profitability for the first time since the company entered the Mobile Network Operator (MNO) industry, recording 2.3 billion yen. This was driven by strong subscriber growth and increased ARPU due to improved network quality, continued cost control measures, and higher advertising revenue from the Saikyo Thanks Festival, a marketing campaign launched in December 2024. Rakuten Mobile aims to achieve full-year EBITDA profitability in FY2025.
   
• The Rakuten Group achieved self-funding in FY2024 through Internet Services EBITDA*1-3, cash flow generated by the FinTech segment*4, working capital improvements, and independent financing initiatives at Rakuten Mobile such as lease financing*5. As a result, the Group’s funding needs for this year for the Mobile business and interest payments*6 were met without relying on additional interest-bearing debt from Rakuten Group*7.
   
• In December 2024, the Rakuten Group issued U.S. dollar-denominated undated subordinated bonds to replace second and fourth domestic subordinated bonds with a first call date in November and December 2025. With this issuance, the Group addressed all callable corporate bonds through the end of FY2025. In February 2025, the company conducted a buyback of a portion of the second and fourth domestic subordinated bonds, retiring a total of 40 billion yen. The company continues to focus on balance sheet management by reducing interest-bearing debt and actively controlling its bond redemption schedule.

Internet Services Segment

• The Internet Services segment achieved revenue of 1.28 trillion yen in FY2024, up 5.8% YoY and Non-GAAP operating income*8 of 85.1 billion yen, up 29.8% YoY, achieving both revenue and profit growth.
   
• Domestic e-commerce gross merchandise sales (GMS)*9 for FY2024 reached 5.96 trillion yen, down 1.5% YoY due to a high YoY hurdle from factors including the partial conclusion of the nationwide travel support program in July 2023 and the transfer of the Rakuten Payment business to the FinTech segment in September 2023. Excluding these factors, domestic e-commerce GMS grew by 4.6% YoY*10. The Group aims to achieve steady growth in the mid to high single-digits in domestic e-commerce GMS for FY2025.
   
• The Rakuten International business unit*11 achieved revenue of USD 2,037 million, up 8.5% YoY, driven by strong earnings from Rakuten Kobo and Rakuten Viber. Non-GAAP operating income reached USD 48.5 million, an improvement of USD 93.4 million YoY, achieving full-year profitability through successful cost reductions and profitability improvements across Rakuten Rewards and portfolio businesses.

FinTech Segment

• The FinTech segment achieved revenue of 820.4 billion yen in FY2024, up 13.1% YoY, and Non-GAAP operating income*8 of 153.4 billion yen, up 37.9% YoY, achieving double-digit growth in both revenue and profit. Throughout the year, customer bases and transaction volumes expanded across all businesses.
   
• Rakuten Card’s shopping gross transaction value (GTV) increased by 13.7% YoY to 24.0 trillion yen in FY2024, driven by an expanded membership base and higher spending per customer. Significant profit growth was achieved for the full year, driven by operating leverage from top-line growth and optimized marketing efforts.
   
• Leveraging Group synergies to drive account acquisitions, Rakuten Bank reached 16.48 million customer accounts (non-consolidated)*12 as of the end of December 2024, up 11.6% YoY. Deposit balances (non-consolidated) increased by 16.9% YoY to 12.0 trillion yen*13, supported by progress in becoming customers’ primary bank. In addition to the accumulation of managed assets, interest income grew significantly in the second half of the year, driven by changes in monetary policy, resulting in significant revenue and profit growth.
   
• Rakuten Securities recorded steady growth across various indices, driven by the continued expansion of its customer base. Despite the introduction of zero commission trading for Japanese stocks in October 2023, by diversifying revenue streams and effectively managing marketing expenses, the company achieved both revenue and profit growth, surpassing 11.93 million customer accounts as of the end of December 2024, up 17.0% YoY, and surpassing 12 million accounts in January 2025.
   

Rakuten Payment achieved continuous growth in transaction volume alongside the expansion of its customer base. Full-year operating profitability was achieved as a result of controlled marketing expenses.
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Mobile Segment

• The Mobile segment achieved revenue of 440.7 billion yen in FY2024, up 20.9% YoY. Non-GAAP operating losses*8 improved by 105.6 billion yen YoY to 208.9 billion yen.
   
• Rakuten Mobile as an individual business recorded revenue of 283.9 billion yen, up 26.2% YoY, driven by subscriber growth and higher data ARPU. Combined with the effects of ongoing cost reductions, Non-GAAP operating losses*8 improved by 85.0 billion yen YoY to 216.3 billion yen. EBITDA*1,8 improved significantly by 98.7 billion yen YoY, recording a deficit of 53.8 billion yen.
   
• As of the end of December 2024, Rakuten Mobile’s total number of subscribers*14 reached 8.3 million, a net increase of 1.77 million over the previous year. Notably, in the fourth quarter, MNO (B2C) line openings growth hit 38.1% YoY, exceeding the 15.6% YoY growth of the first quarter, which included the spring sales campaign. ARPU*15 for Q4 FY2024 increased by 55 yen quarter-on-quarter to 2,856 yen, driven by continued growth in data ARPU, an increase in ARPU from higher advertising revenue and the introduction of fees for certain optional services.

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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 The total of Internet Services and consolidated adjustment EBITDA.
*3 Related adjustment made for right-of-use assets based on IFRS 16.
*4 Dividends, management fees, etc., from FinTech businesses.
*5 The net amount raised and reimbursed from the securitization of accounts receivable and lease financing, etc. of Rakuten Mobile, Inc.
*6 The total payment amount for corporate bond and lease interest, as well as dividends on undated subordinated bonds.
*7 Excluding refinancing.
*8 From Q3 FY2024, in light of expanding mutual synergies between segments within the Rakuten Ecosystem, the effect of these contributions are reflected in segment P&L, in order to refine and enable performance evaluation KPIs that include mutual contribution and customer referral (Mobile Ecosystem Contribution). Non-GAAP operating income and EBITDA in each segment have been retroactively revised starting from Q1 FY2023. This has been reflected in the P&L for each segment as follows: “other internet services” for Internet Services, “other services” for FinTech, and “Rakuten Mobile” for Mobile. Additionally, starting from the third quarter of 2024, due to the transfer of investment income/loss related to the Mobile segment from the Internet Services segment's investment business to the Mobile segment, retrospective adjustments have been implemented. There is no impact on consolidated Non-GAAP operating income, IFRS operating income, or EBITDA. For more information on Mobile Ecosystem Contribution calculations, please see the Consolidated Financial Reports.
*9 Domestic e-commerce GMS = Rakuten Ichiba, Rakuten Travel (GTV on checkout basis), Rakuten Books, Rakuten Books Network, Rakuten Kobo (domestic), 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. 
*10 Based on Rakuten internal calculations. 
*11 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. 
*12 Figures are rounded down to the nearest unit.
*13 J-GAAP. Figures are rounded down to the nearest unit. 
*14 Total of MNO, MVNO, and MVNE subscribers, including Business Continuity Plan (BCP) subscriptions.
*15 ARPU is calculated using the average of MNO subscribers at the end of the previous and most recent quarters, excluding MVNE and BCP subscriptions. Ecosystem ARPU is calculated using MNO subscribers’ uplift effect on Group revenue.