Rakuten Group Inc S/Adr (RKUNY) Q4 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 fourth quarter and fiscal year 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. First, I will provide a summary of the performance and KPIs of fiscal year 2025. First of all, as we announced at the end of last year, Rakten Mobile's total number of subscribers surpassed our target of 10 million subscribers. I would like to once again express my gratitude to not only our users, but also our partner companies and everyone who has supported us. At the same time, Rakuten Mobile also achieved full-year profitability at the EBITDA level of 12.9 billion yen, a significant year-on-year improvement of 66.7 billion yen. Next, I would like to report on our consolidated financial results for fiscal year 2025. Consolidated revenue increased 9.5% year-on-year to 2.5 trillion yen, marking the 29th consecutive year of revenue growth. In particular, the fintech segment contributed significantly to this growth, which was up 19% year-on-year. Consolidated non-GAAP operating income increased significantly by 99.2 billion yen year-on-year to 106.3 billion yen, thanks to the significant contributions of the fintech segment and improved losses in the mobile segment. Consolidated EBITDA grew 33.7% year-on-year to 435.9 billion yen, a new record high. To reiterate, we achieved two earnings targets we set at the beginning of 2025, demonstrating strong growth and solid profit improvement. In fiscal year 2025, Nongap Operating Income and IFRS Oper...