Rakuten Group reported a net loss of 177.8 billion yen for the fiscal year ending December 2025, marking its seventh year of losses, although losses in its mobile segment have decreased.
On February 12, Rakuten Group announced its financial results in accordance with international accounting standards for the fiscal year ending in December 2025, revealing a substantial net loss of 177.8 billion yen. This marks the company’s seventh consecutive year of reporting a net loss. While the company's mobile segment continues to operate at a loss, it has managed to reduce its loss margin from the previous year. In contrast, revenues increased 9.5% year-on-year to 2.4965 trillion yen, although operating profit seen a dramatic decrease of 72.9% to 14.3 billion yen, primarily due to the lack of a previous year's extraordinary profit from U.S. corporate stock revaluations.
Breaking down the performance by segment, both the internet businesses such as 'Rakuten Ichiba' and the financial services, including Rakuten Bank and Rakuten Card, have shown impressive performance. These segments exhibited strength, reflecting robust online retail and financial services usage amid challenging market dynamics. However, the company's mobile operations continued to show a significant operational deficit, reporting an operating loss of 161.8 billion yen, although this was approximately 47 billion yen less than the losses sustained the previous year, suggesting a potential stabilization in this area.
The ongoing restructuring and focus on profitable sectors may allow Rakuten to turn around its fortunes, but the persistent challenges in the highly competitive mobile market demonstrate the need for strategic adjustments moving forward. Investors and industry watchers will be keen to evaluate whether these early signs of improvement in the mobile segment can translate into consistent performance and profitability for the group in the upcoming fiscal periods.
