Rakuten Group Inc S/Adr (RKUNY) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you all for taking the time out of your busy schedules to join us today. I am pleased to provide a detailed report on the financial status of the Rakten Group for the first quarter of 2025. In today's presentation, we will explain and order the overall summary, the performance of each segment, the financial status, and the latest initiatives related to AI. I would appreciate your attention until the end. Let me report on the status of Rakten Mobile. In the first quarter, we achieved an EBITDA profit of 102 million yen, excluding fixed asset tax. The improvement in losses has continued since last year, demonstrating steady progress toward full-year EBITDA profitability. Improvements in network quality and customer acquisition strategies are showing results, and we expect further growth going forward. Rakten Group's long-term growth model is built on three pillars. First, the expansion of the Rakten mobile business. Second, global business development. And third, the Triple 20 initiative leveraging AI. Through these, we aim to increase the number of users, expand their service usage, and enhance customer lifetime value, targeting sustainable growth and high returns. We are particularly focused on expanding the entire ecosystem and establishing a competitive advantage through differentiated Rakten Mobile plays a central role in the ecosystem, with the number of subscribers continuing to grow. As of March 2025, the penetration rate of mobile users within the ecosystem reached 13.7%. Furthermore, mobile subscribers are driving the acquisition of new ecosystem users, generating 181,000 new users in the first quarter. This promotes the use of Rakten's services as a whole and contributes to both vertical and horizontal expansion of the ecosystem. Regarding AI, we are p...