Rakuten's posts smaller Q4 loss but falls short of estimates (updated)

Rakuten

14/02/2024 09:22

(Recasts and adds earnings details)
    By Anton Bridge
       TOKYO, Feb 14 (Reuters) - Japan's Rakuten Group  4755.T 
reported on Wednesday a smaller fourth-quarter loss, helped by a
stronger performance by its e-commerce and fintech businesses
but the result fell short of expectations.
    The operating loss of 33.3 billion yen ($221 million) was an
improvement on a 54 billion yen loss in the third quarter and
less than half of the loss logged in the same period a year
earlier.
    But it still marked Rakuten's 14th consecutive quarter in
the red and was bigger than an average estimate of a 28 billion
yen loss drawn from nine analysts in an LSEG poll.
    Stubborn losses at its mobile unit have made it more
challenging for Rakuten to meet its financial obligations. The
mobile unit logged a 71 billion yen loss.
    Rakuten has 1.8 trillion yen in outstanding debt, according
to LSEG data.
    Last month Rakuten took to refinancing around $1.75 billion
of U.S. dollar-denominated bonds that were due for redemption
this year and Rakuten has recently sold off portions of its
banking and securities arms to generate cash.
    CFO Kenji Hirose told a briefing that the group now has
enough liquidity to meet all of its debt redemptions this year
and would continue its policy of prioritising non-interest
bearing financing to reduce its debt burden.
    

    
    ($1 = 150.5100 yen)

 (Reporting by Anton Bridge; Editing by Edwina Gibbs)
 ((Anton.Bridge@thomsonreuters.com;))