Rakuten Group, Inc. · TSE:4755
Rakuten — Q2 2025 Earnings Presentation
60 slides from Rakuten's earnings presentation, Aug 8, 2025
Slide 1: FY2025 Second Quarter Consolidated Financial Results
FY2025 Second Quarter Consolidated Financial Results August 8, 2025 Rakuten Group, Inc.
Slide 2: Agenda
Agenda 1 Summary 2 Segment Results ・Internet Services Segment ・FinTech Segment ・Mobile Segment 3 Finance 4 AI 2
Slide 3: 1. Summary
1. Summary 3
Slide 4: Profitability
Rakuten Mobile, Inc. EBITDA* (JPY bn) 5.6 Q2/25 EBITDA +19.1 YoY Profitability Steady progress towards achieving 2025 full-year EBITDA profit -87.6 Q1/20 Q1/21 Q1/22 Q1/23 Q1/24 Q2/25 Q1/25 *EBITDA for the first quarter of each year in the graphs exclude property tax payments. 4
Slide 5: Rakuten Mobile, Inc. Number of Subscribers
Rakuten Mobile, Inc. Number of Subscribers Total no. of subscribers* 9.08 mm ■ MNO (incl. MVNE, BCP) ■ MVNO Total no. of subscribers surpassed 9mm Aiming to accelerate pace of net increase to surpass 10 million subscribers as early as possible 20年4月 Apr-20 21年4月 Apr-21 22年4月 Apr-22 23年4月 Apr-23 24年4
Slide 6: Revenue growth
Q2/25 Consolidated Revenue + 11.0% YoY Revenue (JPY bn) +18.1% growth YoY +14.8% YoY across all segments +6.8% YoY Strong performance in key businesses including Rakuten Ichiba, Travel, Card, Bank, Mobile, and Symphony Q2/24 Q2/25 ■ Internet Services Segment ■ FinTech Segment ■ Mobile Segment ■ Cons
Slide 7: Q2 profit
Q2/25 Consolidated Non-GAAP Operating Income +31.9bn YoY (JPY bn) +12.2% YoY Q2 profit -10.5% YoY for the first time +16.9bn YoY since 2019 Along with increased revenue, improving operational efficiencies through the use of data and AI to Q2/24 Q2/25 promote disciplined business operations ■ Interne
Slide 8: Q2/25 Consolidated EBITDA
Q2/25 Consolidated EBITDA*1*2 103.2 Consolidation Adjustments (JPY bn) Mobile Quarterly EBITDA Segment 9.6 bn surpassed 66.8 FinTech Segment 100 bn 48.5 43.5 59.9 bn 41.1 JPY 41.4 38.9 31.5 33.6 30.1 Consolidated EBITDA*1*2 Internet Services Segment 24.8 bn Highest ever for Q2 2.3 -12.0 -16.7 Q2/13
Slide 9: Rakuten AI: Full-Scale Launch
Rakuten AI: Full-Scale Launch Available now on Rakuten Link and as a dedicated web app*1. Planned for release on Rakuten Ichiba in autumn 2025 From research to actions: Cutting-edge Agentic AI integrated with Rakuten Ichiba and other Rakuten Ecosystem services*2 Rakuten AI allows users to research v
Slide 10: 2. Segment Results
2. Segment Results 10
Slide 11: Internet Services Segment
Internet Services Segment 11
Slide 12: Internet Services Segment: Q2/25 Financial Highlights
Internet Services Segment: Q2/25 Financial Highlights ◼ In Domestic EC, Rakuten Ichiba and Travel led the revenue growth. In addition to continuous profit growth in core businesses, improved profitability in Logistics also contributed ◼ In the International BU, Rakuten Viber and Rakuten Viki drove i
Slide 13: Internet Services Segment: Q2/25 Key KPIs
Internet Services Segment: Q2/25 Key KPIs Domestic EC Travel Business GMS*1*2 GTV*3 4.7% + 7.4% YoY YoY JPY 1.5 tn Investment Business International BU*1*5 Advertising IRR*4 Revenue Revenue + 18.1% + 1.9% YoY + 4.7% YoY USD 481 mm JPY 56.7 bn *1: Retroactive adjustments made due to realignment of bu
Slide 14: Domestic EC: Q2/25 Financial Results
Domestic EC: Q2/25 Financial Results GMS growth mainly driven by Rakuten Ichiba, Rebates, etc., and the travel business. Aim to accelerate future growth Operating income boosted by core businesses such as Rakuten Ichiba and Rakuten Travel, as well as the logistics business due to price revisions GMS
Slide 15: Rakuten Ichiba: Q2/25 Business Update
Rakuten Ichiba: Q2/25 Business Update GMS expanded due to an increase in the number of purchasers and average customer spending. Continuing to focus on mobile, delivery, and AI to expand GMS and profit growth Overseas affiliated merchants exceeded 1,000, contributing to GMS expansion Expansion of ov
Slide 16: Travel Business: Q2/25 Business Update
Travel Business: Q2/25 Business Update For Travel Business GTV*1, Domestic Travel GTV*2 remained flat, but Global Travel GTV*3 grew significantly Aim for future growth as a global OTA (Online Travel Agent) by expanding Global Travel GTV*3 Travel Business GTV*1 Global Travel GTV*3 driving growth Expa
Slide 17: Logistics Business: Number of Merchants Using Rakuten Super Logistics
Logistics Business: Number of Merchants Using Rakuten Super Logistics (RSL) Continues to Grow Steadily even after Fee Changes Although various RSL fees changed from June 2025, number of merchants using RSL and the ratio of deliveries via RSL continues to grow, and should contribute to future profit
Slide 18: International BU: Q2/25 Financial Results
International BU : Q2/25 Financial Results *1*2 Rakuten Rewards performance remains stable despite reduction of marketing spend by US companies Strong communications and ad revenue at Rakuten Viber, as well as Rakuten Viki, a video streaming service with multilingual subtitles, also contributed to i
Slide 19: FinTech Segment
FinTech Segment 19
Slide 20: FinTech Segment: Q2/25 Financial Highlights
FinTech Segment: Q2/25 Financial Highlights Customer base for each service grew steadily. Increased GTV for Rakuten Card and interest income for Rakuten Bank drove segment revenue growth Continued efficient business operations in each business segment. Increased profits mainly at Rakuten Bank and Ra
Slide 21: FinTech Segment: Q2/25 Key KPIs
FinTech Segment: Q2/25 Key KPIs Rakuten Card Rakuten Bank Rakuten Bank Shopping GTV Accounts*1 Deposit Balance*1*2 + 10.2% YoY + 7.5% YoY +7.1% YoY JPY 6.5 tn 17.07 mm JPY 11.7 tn Rakuten Securities Rakuten Securities Rakuten Securities General Accounts*1 NISA Accounts*3 Deposited Assets*1*2 + 10.9%
Slide 22: Rakuten Card: Continued Expansion of Shopping GTV and Cost Control
Rakuten Card: Continued Expansion of Shopping GTV and Cost Control Continuous increase in shopping GTV due to expansion of customer base and an increase in average transaction value contributed to revenue growth. Although profits declined due to an increase in interest expenses (JPY +4.1 bn YoY), et
Slide 23: Rakuten Payment: Continued Growth in Revenue and Profits
Rakuten Payment: Continued Growth in Revenue and Profits due to GTV Growth GTV continues to grow as the customer base expands. Cost controls also contributed to higher operating income Rakuten Pay app: Ranked no. 1 in customer satisfaction for 3 consecutive years*1. A first amongst QR/bar code playe
Slide 24: Rakuten Bank (Consolidated): Performance Highlights
Rakuten Bank (Consolidated): Performance Highlights*1 (J-GAAP, Three months ended Jun 25 ) *2 Continued growth in no. of accounts and deposit balance. Interest income grew significantly due to Bank of Japan's interest rate hike policy and the accumulation of diverse assets under management, resultin
Slide 25: Rakuten Securities: Continued Customer Base Expansion
Rakuten Securities: Continued Customer Base Expansion and Record High Revenue Customer base expansion continued, driven by the new NISA, leading to record high quarterly revenue Profits decreased due to higher domestic stock trading related expenses resulting from an increase in customers and transa
Slide 26: Insurance Business: Strong Revenue
Insurance Business: Strong Revenue. Continue to Focus on Selection and Concentration Revenues expanded due to strong face-to-face sales of life insurance, and sales of general insurance products such as automobile insurance. Continued to strengthen "selection and concentration" approach to sales act
Slide 27: Mobile Segment
Mobile Segment 27
Slide 28: Mobile Segment: Q2/25 Financial Highlights
Mobile Segment: Q2/25 Financial Highlights Revenue increased on growth in number of subscribers and Net ARPU at Rakuten Mobile, and on software deliveries to main customer at Rakuten Symphony Revenue Non-GAAP EBITDA*1*2 Operating Income*1 + 18.1% YoY + 16.9 bn YoY Improvement + 21.6 bn YoY Improveme
Slide 29: Rakuten Mobile
Rakuten Mobile
Slide 30: Rakuten Mobile: Q2/25 Financial Results
Rakuten Mobile: Q2/25 Financial Results Increase in subscribers and Net ARPU, along with disciplined cost control, led to a quarterly EBITDA profit Revenue*1 Non-GAAP Operating Income*1*2*3 EBITDA and PMCF*5 +33.5% +19.4bn YoY Q2/24 Q2/25 YoY 91 87 82 8 8 73 15 14 68 13 -39 21 14 -43 16 13 16 -46 18
Slide 31: Rakuten Mobile: Q2/25 Key KPIs
Rakuten Mobile: Q2/25 Key KPIs Total Subscribers*1*2 Adjusted MNO churn*3 (Q2/25) ARPU*4 (Q2/25) (As of Jun 30, 2025) 8.97 mm 1.40% 2,861 yen +26.9% MNO Service Revenue YoY (JPY mm) 51,068 46,576 47,687 43,251 40,237 36,142 33,178 30,484 26,526 28,213 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24
Slide 32: Net Increase in MNO Subscribers
Net Increase in MNO Subscribers Increase in new contracts and decrease in cancellations led to QoQ growth. Aiming to accelerate pace of net increase in the second half, to surpass 10 million subscribers as early as possible Net increase due to collaboration with Rakuten Card and launch of SAIKYO Fam
Slide 33: Adjusted Churn Rate
Adjusted Churn Rate * End of the spring sales season and price revisions by some carriers led to an improvement in June churn rate to the level of fall 2024 2.00% 1.80% 1.60% 1.40% 1.20% 1.00% 1.26% 0.80% 0.60% 0.40% 0.20% 0.00% Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 *Adjusted churn excludes B2C
Slide 34: MNO ARPU
MNO ARPU *1 Data ARPU increased for both B2C and B2B. Ecosystem ARPU decreased due to dilution caused by new subscriptions from new/light Ecosystem users. Such dilution is projected to decline driven by post-contract nurturing effects 2,821 2,857 2,827 2,861 2,801 Limited to users with 867 (JPY) 746
Slide 35: Average Data Usage (B2C)
Average Data Usage (B2C) Data usage by subscribers who signed up during Jan-Mar 2025 is about 15% higher than average, and will be a driver of future ARPU growth ■ Average of all subscribers ■ Average of new contracts during Jan-Mar 2025 (GB per day) 1.19 1.21 Average data usage for 1.07 1.04 subscr
Slide 36: Installing Additional Base Stations
Installing Additional Base Stations The rollout of 10,000+ additional base stations through the year is ongoing, aiming to accelerate the pace in the second half Helps to address coverage holes and capacity issues 10,000+ (Cumulative total) 2,930 2,386 1,884 1,511 1,085 317 649 Jan-25 25年1月 Feb-25 2
Slide 37: No Signal Availability vs. other carriers
Significant improvement in Opensignal’s No Signal Availability* (Percentage of time with no cellular connection) to a level on par with the other carriers (%) 0.80 0.70 0.71 0.60 0.50 0.52 0.53 Rakuten 0.47 Company C 0.40 0.36 0.35 0.32 Company B 0.30 0.29 Company A 0.20 0.10 0.00 Jul-24 24年7月 Sep-2
Slide 38: Rakuten SAIKYO U-NEXT Package Announced
Rakuten SAIKYO U-NEXT Package Announced Planned to be available from October 2025. Expected to promote new customer acquisition and increase ARPU Unlimited data: 2,880 yen per month* (3,168 yen incl. tax) 1,990 yen per month (2,189 yen incl. tax) Smartphone and entertainment all in one Save 990 yen
Slide 39: Enhanced Benefits for Rakuten Card Users
Enhanced Benefits for Rakuten Card Users Premium Card and Black Card members receive monthly GB discount coupons from July 2025. Plans to expand services sequentially Rakuten Card Premium Program Rakuten Card Rakuten Gold Card Rakuten Premium Card Rakuten Black Card Annual fee (incl. tax) Always fre
Slide 40: Number of Corporate Contracts has Exceeded 20,000
Number of Corporate Contracts has Exceeded 20,000 In an MMD Research Institute survey, ranked no. 1 in satisfaction categories such as "cost performance" and "speed of activation" Overall satisfaction (satisfied + somewhat satisfied) was second only to docomo. Percentage answering "dissatisfied" was
Slide 41: Full support for DX driven by AI!
Providing Industry-Specific DX Packages for Corporates Providing a variety of packaged digital transformation services tailored for nursing care, hotels, restaurants, retail, and medical care Network ● Rakuten SAIKYO Plan Business ● KŌSOKU Access ● Rakuten Turbo ● Zero Trust Security ● LAN Total Ser
Slide 42: Rakuten Symphony
Rakuten Symphony
Slide 43: Rakuten Symphony: Q2/25 Business Update
Rakuten Symphony: Q2/25 Business Update Entered into new contracts and sales partnerships with 6 companies, while strengthening collaboration by expanding some existing contracts Launched new products, enabling AI powered software-centric business operations New accounts /enhanced collaboration New
Slide 44: 3. Finance
3. Finance 44
Slide 45: Consolidated Financial Results Summary
Consolidated Financial Results Summary (JPY bn) Q2/24 Q2/25 YoY Comment Revenue 537.3 596.4 +11.0% Non-GAAP Operating Income (Loss) -11.8 20.1 +31.9 Amortization of Intangible Assets -1.9 -1.2 +0.7 Share Based Compensation Expenses -3.9 -4.1 -0.1 • Expected additional tax and delinquency charges to
Slide 46: Financial Strategy
Financial Strategy Continue to maintain the following financial policies and strategies. Given the uncertain macro environment, currently pursuing a conservative financial policy Whilst closely monitoring the situation, our financial targets remain unchanged Redemption of JPY 400bn of retail bonds c
Slide 47: Stable Financial Management through Diverse Funding Methods
Stable Financial Management through Diverse Funding Methods Issued our first sustainability bonds, expanding our funding options Sustainability Bonds Retail Bonds Amount JPY 15 bn JPY 15 bn JPY 130 bn Tenor 3 years 5 years 3 years Coupon 2.336% 3.260% 2.336% Issue Date July 29, 2025 August 4, 2025 U
Slide 48: Continuous Credit Improvement
Continuous Credit Improvement Our credit rating continues to improve. Terms of our recently issued domestic bonds better than that of previous bonds Reaffirming our access to the domestic bond market. Contributing to the expansion of our fund-raising base with a view to proactive refinancing going f
Slide 49: Non-FinTech Interest-Bearing Debt / Non-FinTech EBITDA
Non-FinTech Interest-Bearing Debt /Non-FinTech Non-GAAP EBITDA *1*2 *3 900,000 900,000 Aim for Non-FinTech net interest-bearing debt*1*2/Non-FinTech Non-GAAP EBITDA*3 to be within 5x by 2027 800,000 800,000 700,000 700,000 600,000 600,000 Non-FinTech total interest-bearing 500,000 debt*1*2 500,000 N
Slide 50: 4. AI
4. AI 50
Slide 51: Rakuten's AI-nization Plan
Rakuten’s AI-nization Plan Vision Augment human creativity with the power of AI Strategy Unique Data Online + Offline Growth Assets Channels “Flywheel” Execution Wave 1 Wave 2 Wave 3 Deep Learning at Scale Rakuten AI for Business Rakuten AI for Consumers 51
Slide 52: Personalized Search: Tailoring Search Results to Individual Users
Personalized Search: Tailoring Search Results to Individual Users Experiments demonstrated that users engage with personalized results more, increasing CTR/CVR and improving customer satisfaction, merchant sales and business growth User A User B Jacket Gender Age Brand Category History 52
Slide 53: Introducing Rakuten AI Optimized Ad Delivery in the RPP
Introducing Rakuten AI Optimized Ad Delivery in the RPP * Maximizes advertising returns by automatically allocating budget across channels and time Optimizes CPC per unique conversation data in each channel and improves UX through better targeting and more relevant ads Relevant Audience Rakuten Adve
Slide 54: Providing More Relevant Recommendations
Providing More Relevant Recommendations Significantly improved recommendation quality is contributing to further sales growth for merchants and Rakuten Recommendation algorithm updates Factorization Learning to Machine Model Rank Recommending Effectively capture related products interactions between
Slide 55: Rakuten AI for Rakutenians
Rakuten AI for Rakutenians Empowering our employees to work smarter, faster, and more efficiently 20,000+ Custom AI tools/templates created to date. ~80% Faster product time-to-market using 15,000+ employees using Rakuten AI every day. AI-augmented software development for Rakuten AI for Rakutenians
Slide 56: A Strong Public-Private Partnership to Empower All of Japan
A Strong Public-Private Partnership to Empower All of Japan Selected for the GENIAC project, by METI and NEDO, to strengthen Japan’s GenAI development capabilities R&D project for cutting-edge GenAI foundational models with enhanced memory and cost efficiency Captures the essence of Japanese languag
Slide 57: Launched Rakuten AI, an Agentic AI Platform
Launched Rakuten AI, an Agentic AI Platform A powerful agent for your personal and professional life Built to understand and empower you One Agent, all of Rakuten AI Deep Study Rakuten Adventure English Search Thinker Partner Shopping Planner Tutor Image Summarizer Creator & Analyzer Translator Life
Slide 58: Rakuten AI for All
Rakuten Al for All
Slide 59: Rakuten
Rakuten
Slide 60: This presentation includes forward-looking statements
This presentation includes forward-looking statements that reflect management’s current assumptions and expectations of future events, and accordingly, they are inherently susceptible to uncertainties and changes in circumstances and are not guarantees of future performance. Actual results may diffe