Rakuten Mobile FY2021 and Q4 FY2021 financial results

In FY2021, the Rakuten Group recorded revenue growth in all three segments: Internet Services, FinTech and Mobile. Consolidated revenue achieved double-digit growth, up +15.5% year-on-year (YoY), totaling 1.68 trillion yen. In addition, global gross transaction value (GTV) was 26.9 trillion yen, up +20.5% YoY.

In Q4 FY2021, the average number of monthly active users across the Rakuten Group in Japan grew +12.2% YoY, and the percentage of users who use more than one service reached a record high of 74.7%. In addition, 35% of Rakuten Mobile subscribers who had not previously used a Rakuten service began using Rakuten Ichiba within one year of signing up for the mobile service. As cross-use between Rakuten Mobile and other Rakuten services continues to grow, the Rakuten Ecosystem as a whole is expected to deliver further growth.

Due to strategic investment in future growth including the buildout of the Rakuten Mobile service area ahead of plan in the Mobile segment, the Rakuten Group recorded Non-GAAP operating losses of 225.0 billion yen. Excluding non-recurring operational items such as investment in the Mobile and Logistics businesses and profit fluctuations in the Investment business driven by large market fluctuations, Non-GAAP operating income was 184.6 billion yen, an increase of +23.8% YoY. With the expansion of the Rakuten Mobile service area, Mobile segment profitability is expected to improve from the second quarter of FY2022.

As it works toward carbon neutrality, Rakuten Group, Inc. succeeded in adopting 100% utilization of renewable energy in FY2021 (Based on preliminary figures; target achieved four years ahead of the original FY2025 target). The Rakuten Group as a whole, including main consolidated subsidiaries, will now aim to adopt 100% renewable energy utilization by FY2023.

Mobile segment
In February 2022, Rakuten Mobile reached 96% population coverage ratio for the Rakuten 4G network area. Relative to the end of March 2026 (FY2025) target for “96% 4G population coverage” outlined in the fourth generation mobile communications system (4G) special base station deployment plan (1.7 GHz) approved in April 2018 by the Japanese Ministry of Internal Affairs and Communications (MIC), Rakuten Mobile achieved this target approximately four years ahead of schedule.

The Mobile segment recorded revenue of 227.5 billion yen in FY2021, a significant increase of +31.9% YoY. Revenue from users completing the one-year free campaign is steadily adding more to revenue, and sales from devices are increasing. Revenue recorded from telco platform business Rakuten Symphony also contributed to this result. Due to the buildout of the Rakuten Mobile service area accelerating ahead of plan, the Mobile segment recorded losses of 421.2 billion yen. As the number of users completing the one-year free campaign continues to increase and roaming area costs decrease, earnings are expected to improve from Q2 FY2022 onwards.

The total number of subscriptions for the MNO service and MVNO service surpassed 5.5 million as of February 2022, demonstrating steady progress in customer acquisition. Among the total number of MNO subscribers, the ratio of new subscribers switching over from other mobile carriers (MNP) is increasing.

CT Bureau