Rakuten Group Inc S/Adr (RKUNY) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello everyone. Thank you very much for taking the time out of your busy schedules to join us today. I will be explaining the results of Rakten Group for the second quarter of 2025. Here is today's agenda. First, I will explain the business performance. After that, our CFO, Hirose, will explain the financial results, and our Chief AI and Data Officer, Ting, will provide an update regarding AI. To begin, I will report on the status of Rakuten Mobile, which is of great interest to everyone. In the second quarter of 2025, Rakuten Mobile's standalone EBITDA improved by 19.1 billion yen year-on-year, reaching 5.6 billion yen. Compared to the previous quarter, when we achieved our first quarterly profit, we were able to further expand the profit. We are making steady progress toward achieving full-year EBITDA profitability in 2025. As for the number of subscribers, we surpassed 9 million subscribers on July 7, and as of July 31, we reached 9.08 million subscribers. Toward breaking the major milestone of 10 million, we aim to further accelerate the pace of net additions in the second half of the year. Next, I will report on the group's consolidated business performance. In the second quarter of 2025, consolidated revenue increased by 11% year-on-year to 596.4 billion yen. As a result of strong performance in our main businesses such as Rakuten Ichiba, Travel, Card, Bank, Mobile, and Symphony, the internet services segment grew by 6.8%, the fintech segment by 14.8%, and the mobile segment by 18.1%, achieving revenue growth across all segments. Consolidated non-GAAP operating income improved by 31.9 billion yen year-on-year, reaching 20.1 billion yen. This marks the first time since fiscal year 2019 that we have made a profit in the second quarter. In addition to increased re...