Rakuten Group reports Q2 FY2025 financial results highlights

• Rakuten Group achieves first consolidated Q2 Non-GAAP operating income since 2019 and record-high Q2 EBITDA of over 100 billion yen
• Rakuten Mobile as an individual business achieves quarterly EBITDA profitability of 5.6 billion yen

Overall Performance

・The Rakuten Group recorded year-on-year (YoY) revenue growth in all three segments in Q2 FY2025: Internet Services, FinTech and Mobile. Consolidated revenue reached 596.4 billion yen, a record high for the second quarter, up 11.0% YoY. Strong performance in Rakuten Ichiba, Rakuten Travel, Rakuten Card, Rakuten Bank, Rakuten Mobile, Rakuten Symphony and other core businesses significantly contributed to revenue growth.

・In addition to revenue growth in all segments, the Rakuten Group achieved its first Q2 Non-GAAP operating income since 2019, recording 20.1 billion yen, an improvement of 31.9 billion yen YoY, boosted by major improvements in Rakuten Mobile’s revenue. IFRS operating income also significantly improved to 8.8 billion yen, up 27.2 billion yen YoY, marking the first Q2 quarterly profit since 2020. Consolidated EBITDA^*1, an indicator the Rakuten Group uses to assess the ability to generate cash flow, also reached the highest ever for a second quarter with an increase of 54.5% YoY to 103.2 billion yen.

・Rakuten Group has already secured funding for all its bonds maturing^*2 in 2025, including the replacement of hybrid bonds. The Group has a variety of funding options for interest-bearing debt maturing^*2 in 2026 and beyond. Rakuten Group issued domestic bonds in July and August 2025, reaffirming its access to the domestic bond market and expanding its future fund-raising base.

Internet Services Segment

・In Q2 FY2025 the Internet Services segment achieved revenue of 324.5 billion yen, up 6.8% YoY. Non-GAAP operating income^*3 was 14.1 billion yen, a 10.5% decrease YoY, as a result of valuation losses recorded on some securities held in the Minority Investment business. Non-GAAP operating income, excluding the Minority Investment business, was 19.1 billion yen, up 8.0% YoY, indicating healthy revenue growth.

・Domestic e-commerce gross merchandise sales (GMS)^*4,5 in the second quarter reached 1.49 trillion yen, up 4.7% YoY. Growth was driven by an expansion in GMS from EC shopping platforms including Rakuten Ichiba and the Rakuten Rebates point reward service, driven by growing user numbers, as well as the strong performance of Rakuten Travel. In addition, Non-GAAP operating income reached 23.1 billion yen, a 7.5% increase YoY, with significant contribution from core businesses including Rakuten Ichiba and Rakuten Travel as well as improved profitability due to revised rates in the  logistics business.

・The Rakuten International business unit^*4,6 achieved revenue of USD 481 million, up 1.9% YoY. Non-GAAP operating income was USD 10.2 million, up 52.1% YoY. Rakuten Rewards maintained steady performance despite a reduction in marketing spending by U.S. companies. Strong communications and ad revenue at Rakuten Viber, as well as increased revenue from Rakuten Viki, contributed to increased revenue and profit.

FinTech Segment

・The FinTech segment delivered both revenue and profit growth in Q2 FY2025, with revenue of 232.7 billion yen, up 14.8% YoY, and Non-GAAP operating income^*3 of 43.4 billion yen, up 12.2% YoY. 

・Rakuten Card’s shopping gross transaction value (GTV) continued to expand, reaching 6.5 trillion yen, up 10.2% YoY, driven by its expanding membership base and increased spending per customer. This greatly contributed to segment revenue growth. While profits declined due to an increase in interest expenses and other costs, Rakuten Card aims to leverage increased revenue and overall cost control to achieve a full-year profit level comparable to the previous year.

・At Rakuten Payment, increased GTV in line with the Rakuten Pay app’s expanding customer base contributed to ongoing revenue and profit growth. Non-GAAP operating income for the quarter was 1.8 billion yen, up 57.2% YoY, as effective cost control contributed to a significant expansion in operating profit. For the first time, the Rakuten Pay app achieved first place in customer satisfaction for the QR code payment industry for three consecutive years^*7.

・Rakuten Securities’ total number of general securities accounts exceeded 12.56 million as of the end of June 2025^*8, up 10.9% YoY, driven by ongoing customer base expansion. Rakuten Securities achieved record-high quarterly revenue of 35.6 billion yen, up 7.9% YoY, due to a diversified revenue structure^*8. The business will continue general cost control measures as profit declined due to increased transaction-related costs and financial expenses.

・Rakuten Bank leveraged Group synergies to grow the number of customer accounts (non-consolidated) to 17.07 million as of the end of June 2025, an increase of 7.5% YoY^*8, as the customer base continues to steadily expand. With even more customers using Rakuten Bank as their primary bank account, the total balance of deposits (non-consolidated) steadily increased to 11.7 trillion yen as of the end of June 2025, up 7.1% YoY^*8. The increase in managed assets and the Bank of Japan’s policy interest rate hike led to greatly increased interest revenue, driving substantial revenue and profit growth that resulted in record highs for quarterly ordinary revenue and ordinary income.

Mobile Segment

・In Q2 FY2025 the Mobile segment recorded revenue of 112.1 billion yen, up 18.1% YoY. Driven by increasing Rakuten Mobile subscribers, rising net ARPU^*9 and a boost in Rakuten Symphony’s revenue from software deliveries to major customers, the segment recorded Non-GAAP operating losses^*10 of 37.0 billion yen, an improvement of 16.9 billion yen YoY. 

・Rakuten Mobile as an individual business recorded revenue^*11 of 90.6 billion yen, up 33.5% YoY, while Non-GAAP operating losses^*9,10 were 38.9 billion yen, an improvement of 13.9 billion yen YoY. EBITDA^*1,10,11 reached 5.6 billion yen, up 19.1 billion yen YoY, due to an increase in the number of subscriptions and improved ARPU. Steady progress is being made towards achieving full-year EBITDA profitability in 2025.

・In Q2 FY2025, the total number of Rakuten Mobile subscriptions reached 8.97 million^*12, a net increase of 390,000 from the previous quarter. As of July 31, 2025, the number of subscriptions was 9.08 million. The boost in new subscriptions was the result of an increase in acquisitions compared to the previous quarter and a decrease in the churn rate due to the end of the spring sales season and the impact of price revisions by some carriers. Net ARPU, a key indicator for Rakuten Mobile’s operating income and EBITDA profitability, was 2,474 yen, an increase of 114 yen YoY. Data ARPU continues to be a major growth driver for both B2C and B2B customers.

Notes:
*1 EBITDA is calculated by adding depreciation and amortization expenses to Non-GAAP operating income.
*2 Refers to USD-denominated Undated Subordinated Notes on the first call date.
*3 Retroactive adjustments were made to performance figures from Q1/23 to reflect the Mobile Ecosystem Contribution in segment performance from Q3/24 onwards.
*4. Retroactive adjustments were made due to a reclassification of Internet Services segment businesses in Q1/25 and Q2/25.
*5 Domestic e-commerce GMS = Rakuten Ichiba, Rakuten Travel (GTV on checkout basis), Rakuten Books, Rakuten Books Network, golf business, Rakuten Fashion, Rakuten Dream businesses, Rakuten Beauty, Rakuten 24 and other first-party daily necessities shops, Rakuten Car, Rakuten Rakuma, Rakuten Rebates, Rakuten Mart, Rakuten Ticket, cross border trading, etc. Excludes some tax-exempt businesses and includes consumption tax.
*6 Total of Rakuten Rewards (USA, Europe, Canada), Fillr, overseas Ads business, Rakuten TV, Rakuten France, Rakuten Kobo, Rakuten Viber and Rakuten Viki, etc. Note: This does not include Rakuten Symphony businesses, Taiwan e-commerce, or overseas financial subsidiaries.
*7 Results from Japan Productivity Center’s 2nd 2025 Japanese Customer Satisfaction Index (JCSI) Survey. Rakuten Payment is the first in the QR code payment industry to win 1st place in customer satisfaction for three consecutive years (as of July 30, 2025).
*8 J-GAAP. Figures are rounded down to the nearest unit.
*9 ARPU is calculated using the average of MNO subscribers at the end of the most recent and previous quarters, excluding MVNE, BCP and other contracts. Within ARPU, the cost of sales associated with the revenue uplift from Rakuten Mobile's MNO subscribers and the effect of referring customers from Group companies to the Mobile business are deducted from Ecosystem ARPU. Mobile Ecosystem Contribution is calculated as (Net ARPU x number of MNO contract subscriptions), and is recorded in Rakuten Mobile, Inc.'s income statement after revenue and operating expenses. For more information on Mobile Ecosystem Contribution calculations, please refer to the Consolidated Financial Reports.
*10 Retroactive adjustments were made to Rakuten Mobile standalone business and Mobile segment performance figures from Q1/23 to reflect the Mobile Ecosystem Contribution in segment performance from Q3/24 onwards.
*11 Rakuten Energy, Inc. was merged into Rakuten Mobile, Inc. in February 2025.
*12 Total of MNO, MVNO and MVNE subscribers, including Business Continuity Plan (BCP is a corporate plan sold for business continuity purposes) subscriptions. The number of B2B MVNO subscriptions has been reflected in the number of MVNO subscriptions as of Q3/24.