Rakuten wesentlich besser als Rocket
Look Out Amazon, Here Comes...Rakuten?
Japanese e-commerce firm Rakuten announced on Tuesday it is acquiring Ebates for $1 billion.
The acquisition, which Rakuten hinted at last week, is part of the Japanese company’s push to grow its base beyond its domestic market and hopefully, become a global player. Having made some $1.2 billion acquisitions to date along these lines, this is Rakuten’s most ambitious move to date.
However, investors are dubious that the company can absorb yet another foreign acquisition, much less one the size of Ebates, despite Rakuten’s strong cash position.
Then there is the ever-present Amazon, which dominates the e-commerce market in the U.S. Few believe it will falter in the face of Chinese giant Alibaba, much less a Rakuten-Ebates combo.
Rakuten Goes Forth
Not surprisingly, Rakuten says it is undaunted. For starters, it has assembled a very interesting mix of acquisitions. There is messaging app Viber, which it purchased for $900 million in February, the Canadian ebook offering Kobo, Spanish video service Wuaki.tv, Viki, a digital content platform and Buy.com.
Now it has picked up Ebates.
http://www.forbes.com/sites/erikamorphy/2014/09/...ere-comes-rakuten/
The statement also recognized “the transformative power of critical and emerging technologies to support sustainable development in the Indo-Pacific and deliver economic and social benefits. We continue to advance the development of a trusted, secure and robust telecommunications network, and promote supplier diversification, Open Radio Access Networks (Open RAN) and joint projects such as the Open RAN deployment in Palau.” Other topics covered included cyber, media and information environment, the important role of women and girls in the prevention and resolution of conflicts and in peacebuilding, disaster response, terrorism, and the Quad Partnership for Cable Connectivity and Resilience, among others.
https://www.internationalaffairs.org.au/...ustralian-foreign-affairs/
Hampshire, UK – 29th July 2024: A new study by Juniper Research, the foremost experts in telecommunications markets, has found that annual operator investment into O-RAN (Open Radio Access Networks) will reach $11 billion in 2029; rising from $2 billion in 2024.
This culmination of nearly $40 billion of global investment into AI network automation by 2029 will be driven by the need to cater for increasing cellular connections and data.
https://www.juniperresearch.com/press/...to-surge-in-next-five-years/
1&1 now anticipates an investment volume (cash capex) of around €460 million (previously expected: approx. €380 million after €295.6 million in 2023).
https://www.stock-world.de/nachrichten/adhoc/...t-2024-n17323498.html
August 01, 2024
Critical Infrastructure and Technology Supply Chains
Welcoming joint engagements on connectivity technologies such as 5G, Open Radio Access Network (RAN), and future generation communications networks.
Exploring collaboration between the State Department and IMDA to promote secure 5G networks and foster enabling environments for innovative approaches such as Open RAN.
https://www.whitehouse.gov/briefing-room/...ging-technology-dialogue/
Tuesday, 30 July 2024
Alex Webb Research Analyst
While the rollout of O-RAN has experienced a multitude of delays, we expect large-scale rollouts of O-RAN to take shape in 2025 and 2026, culminating in the deployment of over two million O-RAN-compliant base stations in 2029. This acceleration of O-RAN rollouts will be driven by key operators such as AT&T and Vodafone, all of whom have signed significant deals for O-RAN infrastructure development or begun significant O-RAN RFQs.
As the above infographic illustrates, ten countries have begun deployment or seen commercial launches of O-RAN services, including Canada, Peru, India, Japan, Romania, the UK, and the US. An additional five are also currently field testing O-RAN, including Brazil, Spain, Turkey, and Saudi Arabia.
https://www.juniperresearch.com/resources/...ead-of-open-ran-in-2024/
https://www.g2.com/products/rakuten-advertising/reviews
Rakuten hat sich in den positiven und sogar euphorischen Börsenphasen als schlechtes Investment erwiesen, da ist es wie öfter angesprochen wirklich keine Überraschung, dass eine solche Schrottaktie in negativen Marktphasen noch weiter abgestraft wird.
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O-RAN Market 2024 Growth Rate by Key Manufacturers, Trends Analysis and Forecast to 2032
The global O-RAN market size was valued at USD 2944.8 million in 2023 and is forecast to a readjusted size of USD 44420 million by 2030 with a CAGR of 47.4%
https://www.linkedin.com/pulse/...growth-rate-key-manufacturers-tajve
By Manisha Kalita
RIC Architect Rakuten Symphony
August 6, 2024
In today’s world, AI solutions are everywhere, whether as a marketing tactic or a technological breakthrough. Regardless of the context, end users often remain unaware of the complexities behind AI, such as the specific machine learning models used, the massive data sets processed for training, and the significant computational power needed to run them.
For example, a healthcare provider is interested in using an AI system to assist in analyzing medical images. They are usually unaware with the specifics of how convolutional neural networks or deep learning algorithms work. Their focus is on the outcome: an AI system that can accurately identify potential health issues in medical images, aiding doctors in making quicker and more accurate diagnoses.
This hands-off approach of the end users is logical and justified given the high demands for quick and efficient solutions. With this division of responsibilities, the creation and fine-tuning of AI models are taken care by experts who can develop models that are accurate, efficient and reliable. Meanwhile, end users can focus on leveraging the benefits of AI in their respective domains.
The unseen gap: Automatic model selection
At present, selecting the best AI model for a specific problem often involves a manual process. Experts evaluate different models based on performance metrics, computational efficiency and suitability for the specific task at hand. This selection process can be time-consuming and requires a deep understanding of machine learning and the specific application domain.
With the growing demands for AI solutions across various use cases and the abundance of AI model providers, it becomes increasingly tedious to manually identify the most suitable model for each use case. Soon, there will be a need for systems that can automatically select the most appropriate AI model(s) for a given problem. Such systems would simplify the deployment of AI solutions, making them more accessible to non-experts. Automated model selection could involve evaluating models based on predefined criteria, using meta-learning techniques, or leveraging AI to recommend models based on historical performance data.
AI usage in telecom with Open RAN
In today’s telecom sector, Open RAN (Radio Access Network) is no longer just a buzzword; it is now a significant part of the industry's landscape. According to recent research by Dell’Oro Group, Open-RAN is projected to account for 7% to 10% of global RAN revenues in 2024, with expectations to grow to 20% to 30% by 2028. Telecom operators are willing to try out multi-vendor integration to enhance flexibility, innovation and to leverage a diverse range of solutions from different vendors and thus promoting collaborative solution and driving technological advancements.
AI for telecom network optimization
AI plays a crucial role in solving problems and optimizing resources in telecom networks. AI models can be used for tasks such as traffic prediction, anomaly detection, resource allocation and network performance optimization. Due to the rapidly changing network scenarios, relying on human efforts to find issues and identify the appropriate model can be time-consuming and inefficient. To fully realize the potential of AI in a multi-vendor environment, there is a need for a standardized interface that allows operators to programmatically identify and select AI models from a catalogue. At the same time, this catalogue would include models developed by various vendors, each designed to address specific network challenges.
The Benefits of a Standardized Interface
Interoperability: A standard interface ensures that AI models from different vendors can seamlessly integrate into the telecom network, regardless of the underlying infrastructure.
Ease of Integration: Operators can easily incorporate new models into their network operations without extensive customization or configuration.
Scalability: The ability to programmatically select and deploy models allows for scalable and efficient network management, adapting to changing demands and conditions.
Vendor Collaboration: A standardized model registration process encourages collaboration among vendors, leading to a richer and more diverse set of AI solutions.
Optimizing RAN with AI/ML: Model Registration, Selection, and Deployment in Open-RAN
RAN Intelligent Controller (RIC), evolved with Open RAN, is a cloud-native component designed to control and optimize RAN functions. Aligned with the core principles of Open-RAN, RIC enables multi-vendor interoperability, intelligence, agility, and programmability in radio access networks through third-party applications. These applications often use AI/ML-based recommendations or predictions to make decisions that optimize network performance.
To provide interoperability, O-RAN ALLIANCE working groups are focusing on standardizing the interface to use the AI/ML models. The usage of AI/ML models involve the following steps:
Model Registration: Vendors can register their AI models in a centralized catalogue, providing details about the model’s capabilities, performance metrics and compatibility requirements.
Programmatic Model Selection: Operators can use APIs to programmatically search and select models from the catalogue based on specific criteria such as problem type, performance benchmarks and resource requirements.
Integration and Deployment: Once selected, the models can be integrated into the network management systems using standardized interfaces, ensuring smooth deployment and operation.
Continuous Improvement: Feedback loops can be established to continuously monitor the performance of deployed models, allowing vendors to refine and improve their solutions based on real-world data.
Efficient AI Model management with standard interfaces
An application can leverage the standard interface to discover, deploy and use AI models efficiently. Here’s how it works:
Discovering Models: The application uses the standard interface to search the centralized catalogue for suitable AI models. It can query models based on specific criteria such as problem type, performance metrics and resource requirements.
Deploying Models: Once the appropriate models are identified, the application calculates the required resources based on the desired performance, such as the number of inference requests per time period. The standard interface facilitates the deployment of these models by integrating them into the network management systems seamlessly.
Utilizing Models: The application can use deployed models to achieve its goals. It is not tied to any specific model and can be developed by different vendors. The application identifies and selects the most appropriate models using a standard interface and may use multiple models simultaneously for better accuracy and reliability. For instance, to predict network resources, it might combine outputs from traffic prediction and anomaly detection models, aggregating these predictions to optimize resource allocation.
https://symphony.rakuten.com/blog/...int-for-industry-wide-innovation
Tokyo, August 7, 2024 - Rakuten Group, Inc. today announced that it will support the fashion show and events for fashion brand “sulvam” during Rakuten Fashion Week TOKYO S/S 2025, scheduled for September 2 to September 7, 2024, and again during the term of Paris Fashion Week S/S 2025, scheduled for September 23 to October 1, through the “by R” project to support the Japanese fashion scene.
Rakuten will support sulvam’s milestone collection following a decade since the brand's founding, as well as the full-scale unveiling of their newly launched women's collection. As part of the project’s aim to foster the next generation of designers, Rakuten will also collaborate with Bunka Fashion College, the alma mater of sulvam's Teppei Fujita, to hold a runway show at Rakuten Fashion Week TOKYO S/S 2025, featuring collections that involved fashion students from the college in select parts of the production process. Additionally, Rakuten will support the launch of sulvam’s reception gala during the term of Paris Fashion Week S/S 2025 to celebrate the opening of the brand’s flagship store in Paris.
The runway show will be live-streamed free of charge on Rakuten Fashion’s official website, and exclusive products will be available for sale on Rakuten Fashion, to commemorate the participation of sulvam in this edition of “by R.” In addition, an interview featuring the brand’s designer Teppei Fujita discussing his perspectives on the show will be available on the official website.
Rakuten partnered with the Japan Fashion Week Organization to become the headline sponsor for TOKYO Fashion Week in August 2019, and the event was renamed Rakuten Fashion Week TOKYO. The “by R” project is committed to empowering the Japanese fashion scene by placing the spotlight on select, unique brands loved by a broad range of fans both in Japan and globally.
https://global.rakuten.com/corp/news/press/2024/...=8&category=ec
Tokyo, August 8, 2024 – Rakuten Group, Inc. and Macquarie Asset Management today announced that Rakuten Mobile, Inc., a subsidiary of Rakuten Group, will raise between JPY 150 billion to 300 billion (around $US1~2 billion) in funds for the sale and leaseback of a portion of its mobile network assets with a consortium of global leading infrastructure investors, led by Macquarie Asset Management and including British Columbia Investment Management Corporation, via the Macquarie Asia-Pacific Infrastructure Fund 3.
Through this arrangement, Rakuten Mobile will conduct fundraising in the form of a sale and leaseback transaction and will continue to manage and operate these mobile network assets. Rakuten Group will promptly announce the final amount and other conditions in due course.
Mickey Mikitani, Chairman and CEO of Rakuten Group, said, “I am delighted to announce this innovative partnership with Macquarie Asset Management, one of the world's leading infrastructure investors. They strongly believe in our vision for the future, and together, we've made our financial foundation even stronger. Rakuten Mobile is already well on its way to profitability, and with our new initiative, we will continue to build on this momentum as we aim to reach profitability even faster and become the top mobile carrier in Japan.”
Verena Lim, Co-Head of Asia-Pacific Macquarie Asset Management Infrastructure and Chief Executive Officer of Macquarie Group in Asia, said, “We believe Japan’s commitment to revitalize its digital economy and accelerate the pace of digital transformation presents significant opportunities to investors in the digital infrastructure sector. The Rakuten Ecosystem and Rakuten Mobile’s network is at the very forefront of this digital evolution, and we are excited to partner with Rakuten Mobile to support and accelerate its business growth."
Macquarie has been present in Japan for more than 24 years, and Macquarie Asset Management has been investing in Japan as well as connecting Japanese investors to global opportunities across infrastructure, green investment and real estate. With deep expertise in managing funds in Asia-Pacific, together with on-the-ground teams equipped with strong local market knowledge and deep relationships, Macquarie continues to deliver investment opportunities and value for its clients.
Objective of this funding
The Rakuten Group is committed to its financial strategy of pursuing financing measures that balance growth-oriented investment with mid-to-long-term financial soundness and is currently working on balance sheet management through a reduction of total interest-bearing debt and proactive debt maturity management.
Rakuten Mobile’s profitability has been improving in accord with a steady increase of its subscriber base and capex reduction. Furthermore, Rakuten Group’s free cash flow in the Internet Services segment and dividends received from the Fintech segment continue to increase. The Group finance strategy aims to establish self-funding for the financing needs of Rakuten Mobile through internal cash flows within the Group by the end of this year.
Rakuten Mobile's cash flow before marketing costs is making steady progress towards profitability. At the same time, based on the assumption that a certain level of capital investment will continue in the future, it is important for the Group’s financial strategy to ensure adequate liquidity until Rakuten Mobile achieves positive free cash flow on a standalone basis.
The large-scale capital financing of Rakuten Mobile improves its liquidity and establishes its self-funding platform. Additionally, the cash flow generated from Rakuten’s Internet Services and Fintech businesses can be prioritized for reducing its interest-bearing debt, thereby enhancing its liquidity position in the Rakuten Group.
Securing long-term and large-scale funding for Rakuten Mobile from leading global infrastructure investors, to meet immediate funding needs, not only contributes to diversifying the company’s financing methods and expanding its investor base but also is expected to further strengthen the Group's financial foundation.
(1) Type of Financing Sale and leaseback
(2) Subject Assets Mobile network
(3) Scheduled Lease Principal (Funding Amount)*2 Between JPY 150 billion to 300 billion
(4) Lease Period 10 years
(5) Use of Proceeds Working capital and capex for Rakuten Mobile, etc.
(6) Arranger SMBC Nikko Securities Inc.
https://global.rakuten.com/corp/news/press/2024/...re%2520Fund%25203.
Rakuten Group Q2 FY2024 Financial Results Highlights
Overall Performance
The Rakuten Group recorded year-on-year (YoY) revenue growth in all three segments in Q2 FY2024: Internet Services, FinTech and Mobile. Consolidated revenue reached 537.3 billion yen, a record high for the second quarter, up 8.1% YoY.
The Rakuten Group recorded Non-GAAP operating losses in Q2 FY2024 of 11.8 billion yen, a significant improvement of 27.6 billion yen YoY due to increased revenue, improved profitability in domestic EC growth investment businesses and overseas businesses, strong performance across the FinTech businesses, and continued loss improvement driven by increased revenue and cost optimization at Rakuten Mobile. The Group is making steady progress towards its goal of achieving profitability for FY2024. Consolidated EBITDA, an indicator the Rakuten Group uses to assess the ability to generate cash flow, for the quarter was profitable, recording 66.8 billion yen, an increase of 98.6% YoY.
The liquidity gap for 2025 has already been addressed through the issuance of foreign bonds in the first half of the year. Additionally, Rakuten Mobile will establish self-funding through its lease finance fundraising. The business has secured the necessary funds for the near future, thereby improving the Group's overall liquidity and enabling the Group to allocate cash flow from the Internet Services and FinTech businesses to reduce interest-bearing debt. Despite still being in the investment phase to acquire new subscribers, Rakuten Mobile’s pre-marketing cash flow (PMCF) turned positive in Q2 FY2024.
Internet Services Segment
The Internet Services segment achieved growth in both revenue and profit in Q2 FY2024, with revenue of 303.9 billion yen, up 3.1% YoY, and Non-GAAP operating income of 18.9 billion yen, up 30.3% YoY.
Domestic e-commerce gross merchandise sales (GMS) were 1.4 trillion yen, down 4.8% YoY due to the effect of nationwide travel support which partially ended in July 2023 and revisions to the Super Point Up Program in December 2023 and other conditions. At the same time, Rakuten Ichiba's GMS growth rate improved quarter on quarter (QoQ). Despite a rush in demand following rule changes to the Furusato Nozei hometown tax program in October last year, the Group aims to achieve YoY growth for FY2024 and expects a return to growth from Q4 FY2024 onwards.
Profitability in domestic EC growth investment businesses has steadily improved. This was particularly driven by the enhanced profitability of Rakuten Seiyu Netsuper, after it became a wholly-owned subsidiary of Rakuten Group, as well as successful operational improvements and pricing adjustments in the logistics business.
In the second quarter, revenue from the advertising business increased to 54.0 billion yen, up 8.4% YoY.
Rakuten’s overseas businesses continued to steadily expand their user base, especially the digital content businesses, with significant improvements in profitability. Notably, Rakuten Viber's Q2 FY2024 revenue increased 51.3% compared to 2022, driven by increased sales of telecom services, Business Messages and advertising. Moreover, Rakuten Kobo recorded robust sales of its first-ever color devices as well as significantly improved profitability. Total operating income for Rakuten’s four overseas digital content and communication platform businesses improved considerably by 2.7 billion yen, achieving quarterly profitability.
FinTech Segment
The FinTech segment achieved high growth in both revenue and profit for Q2 FY2024, with revenue of 202.7 billion yen, up 12.0% YoY, and Non-GAAP operating income of 42.3 billion yen, up 28.1% YoY. The customer base and transaction value of each business continued to expand.
Rakuten Card's shopping gross transaction value (GTV) increased to 5.9 trillion yen, up 13.9% YoY for the quarter, as a result of an expansion in Rakuten Card’s membership base and average spending per customer, contributing to overall segment revenue growth. Optimizing marketing expenses and maintaining low bad debt-related expenses also contributed to the achievement of double-digit profit growth.
Rakuten Bank leveraged Group synergies to acquire new customer accounts, achieving a total of 16 million accounts as of July 29, 2024. With more customers using their Rakuten Bank account as their main account and for their everyday finances, the total balance of deposits (non-consolidated) steadily increased to 10.9 trillion yen as of the end of June 2024, up 15.3% YoY. This accumulation of managed assets boosted interest income, leading to substantial revenue and profit growth.
Rakuten Securities recorded its highest-ever revenue due to increased earnings from transactions driven by the continuous expansion of its customer base. The total number of general securities accounts surpassed 11.33 million as of the end of June 2024, a 22.7% increase YoY. Profits exceeded those of the previous quarter when zero commission trading for Japanese stocks was introduced, and both revenue and profit increased QoQ.
Rakuten Payment recorded an increase in transaction value, particularly through Rakuten Pay and Rakuten Cash, leading to revenue growth. By maintaining a lean operational structure while achieving sales growth, Non-GAAP operating income for Q2 FY2024 reached 1.2 billion yen, a 3.9 billion yen increase YoY, marking the second consecutive quarter of operating profitability.
Mobile Segment
In Q2 FY2024 the Mobile segment recorded revenue of 95.0 billion yen, up 18.6% YoY. MNO service revenue expanded and profitability further improved in line with an increase in Rakuten Mobile subscribers, leading to Non-GAAP operating losses of 60.6 billion yen, an improvement of 21.8 billion yen YoY.
Rakuten Mobile as an individual business recorded non-consolidated revenue of 67.9 billion yen, up 29.9% YoY, driven by an increase in the number of subscribers and improved ARPU. Coupled with the effects of ongoing cost reductions, Non-GAAP operating losses were 59.5 billion yen, an improvement of 19.4 billion yen YoY. EBITDA was a loss of 20.2 billion yen, marking an improvement of 22.6 billion yen YoY.
The total number of subscriptions (both individual and business) surpassed 7.7 million as of August 7, 2024, driven by strong subscriber acquisition through the Rakuten Ecosystem, especially for B2C customers. The number of subscribers, excluding BCP lines, for MNO and MVNE was 7.26 million. This quarter saw the addition of 610,000 subscribers, and the largest-ever quarterly increase in B2C subscribers. Churn has also continuously improved, with adjusted MNO churn for Q2 FY2024 hitting 1.04%. MNO ARPU has been steadily rising in both B2C and B2B, primarily driven by data ARPU. MNO ARPU for the quarter was 2,021 yen, an increase of 55 yen QoQ. Additionally, monthly MNO ARPU for June was 2,031 yen.
The average number of new Rakuten Group services used per Rakuten Mobile subscriber (MNO B2C customers) over the two years after contracting increased by 2.45 services compared with non-subscribers, accelerating cross-usage within the Rakuten Ecosystem. Moreover, compared to non-subscribers, Rakuten Mobile subscribers spent 49.7% more annually (GTV) on Rakuten Ichiba, 12.0% more on Rakuten Travel, and 25.9% more on Rakuten Card, contributing to the overall increase in the Group's gross transaction value.
Rakuten Mobile launched commercial services using the “platinum band” 700 MHz spectrum on June 27, 2024. In addition to the continuous expansion of 4G and 5G base stations, ongoing efforts are being made to improve network quality, such as expanding the 5G network area since measures preventing interference between mobile and satellite communications in shared bandwidth were eased, enhancing 5G base station traffic capacity per network cell and increasing the number of unique 5G users.
https://global.rakuten.com/corp/news/press/2024/0809_01.html
10 hours ago
On August 9, Rakuten announced financial results for the second quarter of 2024 from its headquarters in Tokyo. Chairman and CEO Mickey Mikitani and leaders from the Rakuten Group shared updates and highlights from the company’s diverse portfolio of more than 70 services.
The Rakuten Group recorded year-on-year (YoY) revenue growth in all three segments in Q2 FY2024: Internet Services, Fintech and Mobile. During this quarter, the company recorded 537.3 billion yen in consolidated revenue (an increase of 8.1% YoY), marking its highest revenue ever recorded in the second quarter of a fiscal year.
The Group is making steady progress towards its goal of achieving profitability for FY2024. It continued to see EBITDA profitability for this quarter as well, with consolidated EBITDA of 66.8 billion yen, an increase of 98.6% YoY. Non-GAAP operating losses stood at 11.8 billion yen, a significant improvement of 27.6 billion yen YoY. This came as a result of increased revenue, improved profitability in domestic EC growth investment businesses and overseas businesses, strong performance in the Fintech segment, and improved losses and cost optimization at Rakuten Mobile.
Internet segment highlights
Non-GAAP operating income for the Internet Services segment grew 30.3% YoY.
The Internet Services segment of the Group achieved significant growth in both revenue and profit in the second quarter, with revenue of 303.9 billion yen, up 3.1% YoY, and Non-GAAP operating income of 18.9 billion yen, up 30.3% YoY.
The Group noted improved profitability in domestic EC growth investment businesses during the second quarter of 2024. This was driven by the enhanced profitability of Rakuten Seiyu Netsuper after it became a wholly-owned subsidiary of Rakuten Group, as well as successful operational improvements and pricing adjustments in the logistics business.
In overseas businesses, Rakuten’s digital content businesses saw steady growth in their user base and significant improvements in profitability. Total operating income for the four overseas digital content and communication platform businesses (Rakuten Viber, Rakuten Viki, Rakuten Kobo and Rakuten TV) improved considerably by 2.7 billion yen, achieving quarterly profitability. Rakuten Viber’s revenue for the quarter increased 51.3% compared to 2022, driven by increased sales of telecom services and Business Messages.
Fintech segment expands customer base
Rakuten’s Fintech segment delivered substantial growth in both revenue and profit the second quarter of 2024.
Rakuten’s Fintech segment delivered substantial growth in both revenue and profit for the second quarter of 2024, with revenue of 202.7 billion yen, up 12% YoY, and Non-GAAP operating income of 42.3 billion yen, up 28.1% YoY.
Driven by a strong expansion in customer base and average spending per customer, Rakuten Card recorded shopping gross transaction value of 5.9 trillion yen, up 13.9% YoY. Optimizing marketing expenses and maintaining low bad debt-related expenses also contributed to the achievement of this double-digit profit growth.
“We will work to become the strongest and best connected network in Japan. Thanks to platinum band, our connection will only get better.”
Rakuten Group Chairman and CEO, Mickey Mikitani
Leveraging group synergies, Rakuten Bank acquired new customer accounts, resulting in a total of 16 million accounts as of July 29, 2024. With more customers using their Rakuten Bank account as their main account and for their everyday finances, the total balance of deposits increased to 10.9 trillion yen as of the end of June 2024, up 15.3% YoY. This accumulation of managed assets boosted interest income, leading to substantial revenue and profit growth.
Rakuten Securities’ continuous expansion of its customer base has also helped the company record its highest-ever revenue. The company surpassed 11.33 million customer accounts as of the end of June 2024, an increase of 22.7% YoY.
Rakuten Mobile launched commercial services using the “platinum band” 700 MHz spectrum on June 27, 2024.
Sustained growth in the Mobile segment
The Mobile segment recorded revenue of 95.0 billion yen, up 18.6% YoY, in Q2 FY2024. Driven by increased subscriber numbers at Rakuten Mobile, MNO service revenue expanded and profitability further improved, leading to Non-GAAP operating losses of 60.6 billion yen, an improvement of 21.8 billion yen YoY.
The total number of subscribers (both individual and business) surpassed 7.7 million* as of August 7, 2024, driven by strong acquisition of subscribers through the Rakuten Ecosystem, especially among B2C customers. This quarter saw the addition of 610,000 subscribers, and the largest ever quarterly increase in B2C subscribers.
“Our approach for deploying Rakuten AI is practical and cost-effective. We always seek to understand the fundamental technology from the ground up, enabling us to amplify our impact across the Rakuten Ecosystem.”
Rakuten Group Chief AI & Data Officer Ting Cai.
The latest figures also show Rakuten Mobile users spending more across the Rakuten Ecosystem. Compared to non-subscribers, Rakuten Mobile subscribers spent 49.7% more annually on Rakuten Ichiba, 12.0% more on Rakuten Travel, and 25.9% more on Rakuten Card, contributing to the overall increase in the Group’s gross merchandise value.
Rakuten Mobile also launched commercial services using the “platinum band” 700 MHz spectrum on June 27, 2024. Ongoing efforts are being made to improve network quality, such as expanding the 5G network area, enhancing 5G base station traffic capacity and increasing the number of unique 5G users.
“We will work to become the strongest and best connected network in Japan. Thanks to platinum band, our connection will only get better,” commented Rakuten Group Chairman and CEO, Mickey Mikitani.
Rakuten’s unique AI approach
Rakuten is developing Universal Concierge, which will help users discover new products and services from across the Rakuten Group.
“Our approach for deploying Rakuten AI is practical and cost-effective. We always seek to understand the fundamental technology from the ground up, enabling us to amplify our impact across the Rakuten Ecosystem,” said Rakuten Group Chief AI & Data Officer Ting Cai. “When we’re determined to focus on an objective, we can conquer any challenges.”
https://rakuten.today/blog/...nue-for-rakutens-q2-fy2024-results.html
Rakuten Mobile has struck a deal with a group of infrastructure funds for the sale and leaseback of parts of its mobile network. Rakuten Group said in a statement Thursday it expected to raise 150 billion to 300 billion Japanese yen (US$1.0 billion to $2.1 billion) from the arrangement, which is yet to be finalized.
Funds raised from the sale will be used for working capital and mobile capex, it said.
The investor consortium is led by Macquarie Asset Management and includes the British Columbia Investment Management Corporation, the company said. Rakuten isn't disclosing which assets are to be transferred, but a spokesperson said in an email that the partnership with "a world-leading partner like Macquarie" was a sign of confidence in the company.
Judging by the sale and leaseback deals across Asia in the past four years, the deal will almost certainly involve Rakuten's passive network assets such as mobile towers. It's become a favorite tool for Asia-Pacific telcos, enabling them to monetize their fixed assets and raise some cash without sacrificing network quality.
https://www.lightreading.com/finance/...om-network-sale-and-leaseback
August 09, 2024
Key Financial Results
Revenue: JP¥36.7b (up 23% from 1Q 2024).
Net income: JP¥10.9b (up 35% from 1Q 2024).
Profit margin: 30% (up from 27% in 1Q 2024). The increase in margin was driven by higher revenue.
EPS: JP¥62.59 (up from JP¥47.37 in 1Q 2024).
Rakuten Bank Revenues and Earnings Beat Expectations
Revenue exceeded analyst estimates by 53%. Earnings per share (EPS) also surpassed analyst estimates by 13%.
Looking ahead, revenue is forecast to grow 6.0% p.a. on average during the next 3 years, while revenues in the Banks industry in Japan are expected to remain flat.
https://simplywall.st/stocks/jp/banks/tse-5838/...-beats-expectations
August 08, 2024
Mickey kicked off Rakuten Optimism 2024 with a keynote speech at the Business Conference, followed by leading experts sharing their wide range of insights. In addition to the key topics of AI and mobile, talks covered a diverse range of themes such as e-commerce, fintech, and sustainability. Visitors also enjoyed booths to experience generative AI technology.
https://www.youtube.com/watch?v=UTjC7mFlcIg
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