Rakuten Group (4755) investor relations material

Executive summary

• Achieved record Q1 revenue of JPY 643.6 billion, up 14.4% year-over-year, with all major segments—Internet Services, FinTech, and Mobile—reporting growth.

• EBITDA reached JPY 108.8 billion, up 36.2% YoY, and non-GAAP operating income turned positive at JPY 36.6 billion, marking a significant YoY improvement.

• IFRS operating income was JPY 30.4 billion, reversing a prior-year loss, and net loss attributable to owners improved to JPY 18.6 billion.

• Strategic focus on leveraging AI and digital transformation to enhance customer experience, reduce costs, and drive ecosystem synergies.

• Comprehensive income turned positive at JPY 39.6 billion, compared to a loss of JPY 106.8 billion in Q1 2025.

Financial highlights

• Q1 revenue: JPY 643.6 billion (+14.4% YoY); EBITDA: JPY 108.8 billion (+36.2% YoY); non-GAAP operating income: JPY 36.6 billion.

• IFRS operating income: JPY 30.4 billion; net loss attributable to owners: JPY 18.6 billion, a substantial YoY improvement.

• Basic and diluted EPS improved to JPY (8.59) from JPY (34.08) YoY.

• Comprehensive income turned positive at JPY 39.6 billion.

• Segment profits and losses improved across Internet Services, FinTech, and Mobile.

Outlook and guidance

• Targeting high single-digit consolidated revenue growth for FY2026, excluding the securities business.

• Aims to increase both Non-GAAP and IFRS operating income for the full year.

• Targeting net debt to EBITDA (non-fintech) below 5x by 2027; ratio at 5.6x as of March 2026.

• Ongoing business portfolio review to lower balance sheet risk and accelerate capex for mobile network construction.

• Internet Services to focus on customer acquisition and AI tools; FinTech to expand transaction value; Mobile to improve network quality and expand subscribers.