Rakuten logs $213 million quarterly loss as mobile losses negate fintech growth (updated)

Rakuten

14/05/2024 07:55

(Adds analyst estimates in paragraph 2, fintech and mobile
segment results in paragraphs 3 and 4)
       TOKYO, May 14 (Reuters) - Japan's Rakuten Group  4755.T 
on Tuesday logged an operating loss of 33.3 billion yen ($213
million) in the January-March quarter, its 15th straight quarter
in the red as losses in its mobile unit weighed on robust growth
in its fintech business.
    The operating loss is an improvement compared to a year
earlier when the e-commerce and fintech group posted a loss of
76.2 billion yen, though it narrowly undershot an average 32
billion yen loss expected by six analysts polled by LSEG.
        Rakuten's fintech arm, which includes banking,
securities brokering, credit card and insurance services,
achieved its highest-ever operating profit of 39.3 billion yen.
        But Rakuten's mobile business, which has struggled under
spiralling build-out costs and lacklustre subscriber growth
since its launch in 2020 recorded an operating loss of 71.9
billion yen.

    ($1 = 156.4800 yen)

 (Reporting by Anton Bridge; Editing by Tom Hogue and
Christopher Cushing)
 ((Anton.Bridge@thomsonreuters.com;))