Rakuten shares surge more than 15% on shrinking losses

Rakuten

15/02/2024 01:46

TOKYO, Feb 15 (Reuters) - Japan's Rakuten Group  4755.T 
shares surged more than 15% in early trading on Thursday after
its earnings showed a smaller loss in the October-December
period as it stemmed losses from its money-losing mobile arm.
    The operating loss of 33.3 billion yen ($221.6 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, company filings showed on Wednesday.
    Rakuten's mobile business registered an operating loss of 71
billion yen in the quarter, down from 81 billion yen the
previous quarter.
    The Tokyo-based company aims to achieve monthly earnings
before interest, taxes, depreciation and amortisation (EBIDTA)
in the segment by the end of 2024.
    Rakuten's core e-commerce arm and its suite of fintech
businesses posted strong profits.
    "Our first impression is slightly positive," wrote Jefferies
analyst Hiroko Sato in a report, adding that it would not be
easy for Rakuten to meet its subscriber number and revenue
targets needed to achieve profitability in the mobile business.
    
($1 = 150.2600 yen)

 (Reporting by Anton Bridge; Editing by Stephen Coates)
 ((Anton.Bridge@thomsonreuters.com;))