Rakuten Group reports solid EBITDA growth of 17% YoY

Rakuten Group, the Japanese e-commerce and technology conglomerate, announced a robust 17% year-on-year growth in its consolidated EBITDA for the fiscal period ending in late 2024 during its quarterly earnings presentation in Tokyo. This significant financial milestone was driven primarily by a surge in performance across its internet services segment and a narrowed loss in its mobile network division. The company’s strategic shift toward cost optimization and ecosystem synergy proved successful in stabilizing its balance sheet amidst high competitive pressure in the domestic telecommunications market. The reported earnings highlight a period of transition for the company as it seeks to offset the massive capital expenditures incurred by the rollout of Rakuten Mobile. By leveraging its extensive biological ecosystem of over 70 services, including banking, credit cards, and online retail, Rakuten has managed to maintain high user retention and cross-platform spending. This integrated approach has allowed the firm to achieve better operational efficiency, which is reflected in the double-digit growth of its earnings before interest, taxes, depreciation, and amortization. Industry analysts point to the continued expansion of Rakuten’s fintech arm as a major contributor to the group's overall profitability. The fintech sector, which includes Rakuten Bank and Rakuten Card, remains a high-margin pillar for the organization, providing the necessary liquidity to sustain the company's broader digital transformation goals. Furthermore, the stabilization of the mobile segment—achieved through subscriber growth and reduced roaming costs—has significantly decreased the drag on the group's consolidated bottom line. Looking ahead, Rakuten Group executives emphasized their commitment to reaching full-year profitability by further refining marketing spend and capitalizing on artificial intelligence to enhance customer experiences. The company intends to focus on deepening the integration between its mobile subscribers and its e-commerce marketplace to drive higher lifetime value per user. As the group nears its goal of a self-sustaining mobile business, the focus remains on maintaining the momentum of its EBITDA growth to satisfy investors and manage its long-term debt obligations.