Rakuten Group Inc
OTC:RKUNF
Rakuten Group Inc
Rakuten Group Inc., established in 1997 by Hiroshi Mikitani, has blossomed from its origins as a fledgling e-commerce platform into a sprawling digital ecosystem. At the heart of Rakuten's business model is its robust online marketplace, Rakuten Ichiba, which connects a broad spectrum of vendors with consumers. Unlike traditional e-commerce giants that focus on direct sales, Rakuten Ichiba operates as a marketplace, allowing a multitude of independent sellers to flourish and pay commission fees. This approach has fostered a unique, vibrant marketplace bustling with diverse products. The company enhances this ecosystem further through its loyalty program, Rakuten Super Points, which incentivizes spending across its platforms, instilling a cycle of engagement and repeat business that bolsters its retail operations.
Beyond e-commerce, Rakuten diversifies its revenue streams through ventures in fintech, telecommunications, and digital content. Rakuten’s fintech arm, which includes services such as Rakuten Card and Rakuten Bank, contributes significantly by harnessing the power of its expansive user base, facilitating credit and banking services seamlessly integrated into its online store. In telecommunications, Rakuten Mobile represents an ambitious foray into the competitive industry, offering cost-effective mobile services relying on proprietary network technology. This diversification is not merely horizontal but is also about vertical integration, combining shopping, communications, and financial services into a cohesive, interconnected ecosystem that generates multiple revenue channels and facilitates cross-promotion among its services, fortifying its overall market position.
Rakuten Group Inc., established in 1997 by Hiroshi Mikitani, has blossomed from its origins as a fledgling e-commerce platform into a sprawling digital ecosystem. At the heart of Rakuten's business model is its robust online marketplace, Rakuten Ichiba, which connects a broad spectrum of vendors with consumers. Unlike traditional e-commerce giants that focus on direct sales, Rakuten Ichiba operates as a marketplace, allowing a multitude of independent sellers to flourish and pay commission fees. This approach has fostered a unique, vibrant marketplace bustling with diverse products. The company enhances this ecosystem further through its loyalty program, Rakuten Super Points, which incentivizes spending across its platforms, instilling a cycle of engagement and repeat business that bolsters its retail operations.
Beyond e-commerce, Rakuten diversifies its revenue streams through ventures in fintech, telecommunications, and digital content. Rakuten’s fintech arm, which includes services such as Rakuten Card and Rakuten Bank, contributes significantly by harnessing the power of its expansive user base, facilitating credit and banking services seamlessly integrated into its online store. In telecommunications, Rakuten Mobile represents an ambitious foray into the competitive industry, offering cost-effective mobile services relying on proprietary network technology. This diversification is not merely horizontal but is also about vertical integration, combining shopping, communications, and financial services into a cohesive, interconnected ecosystem that generates multiple revenue channels and facilitates cross-promotion among its services, fortifying its overall market position.
Revenue Growth: Rakuten Group's Q3 2025 consolidated revenue rose 10.9% year-on-year to JPY 628.6 billion, with double-digit growth across all segments.
Profitability: Non-GAAP operating income surged 212.8% year-on-year to JPY 38.6 billion, and consolidated EBITDA reached a record-high JPY 118.7 billion, up 28.8%.
Mobile Progress: Rakuten Mobile surpassed 9.5 million subscribers, with revenue up 31.2% and ARPU rising to JPY 2,873.
FinTech Momentum: FinTech segment revenue jumped 20.3% to JPY 250.5 billion, with strong growth in Rakuten Card, Bank, and Securities key metrics.
AI Expansion: Rapid rollout of AI-powered tools and agents across Rakuten’s ecosystem, including a new partnership with HP Japan for on-device AI.
Impairment Charge: JPY 27.9 billion impairment loss related to exit from certain online supermarket operations weighed on profits.
Guidance: Management remains confident in achieving full-year profitability for both non-GAAP and IFRS operating income, and expects over JPY 400 billion EBITDA for the full year.
