Rakuten Group Inc S/Adr (RKUNY) Q3 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 third quarter of 2025. Here is today's agenda. First, I will explain the business performance. Then, our CFO, Hirose, will explain the financial results, followed by our Chief AI and Data Officer, Ting, who will provide an update regarding our AI initiatives. To begin, I will report on our consolidated results. Consolidated revenue for the third quarter of 2025 increased 10.9% year-on-year to 628.6 billion yen. With solid performance in core businesses across segments, we achieved double-digit revenue growth in all segments. The internet services segment rose 11.1% year-on-year, the fintech segment 20.3%, and the mobile segment 12%. Consolidated non-GAAP operating income was 38.6 billion yen, up 212.8% year-on-year. In internet services, there was a rush of demand before the rule changes for hometown tax donations were implemented in October, but even excluding the profit increase attributable to this surge, we achieved steady growth. For this fiscal year, as with last year, we aim to achieve full-year profitability for both Nongap Operating Income and IFARS Operating Income. Consolidated EBITDA was 118.7 billion yen, up 28.8% year-on-year, a record high for a third quarter. For the full year, we expect to generate over 400 billion yen of EBITDA. Regarding the number of subscribers of Rakten Mobile, we surpassed 9.5 million the other day. As I will explain later, we continue to build strong momentum in B2C acquisitions and we will continue to accelerate this while converting our growing B2B pipeline, aiming to reach a total of 10 million subscribers by the end of 2025. Next, I will explain the business performan...