Rakuten Group Posts Net Loss of 151.2 B. Yen in Jan.-Sept.

Tokyo, Nov. 14 (Jiji Press)–Japan’s Rakuten Group Inc. has reported a consolidated net loss of 151.2 billion yen for January-September, reflecting losses related to its partial withdrawal from the online supermarket business despite smaller losses in its mobile phone carrier operations. According to earnings data released Thursday, the company’s net loss increased slightly from 150.3 billion yen a year earlier. It posted an operating profit for January-September for the first time in six years, at 1.3 billion yen, against the year-before operating loss of 51 billion yen. Losses from its mobile phone business, which is struggling with hefty costs for setting up base stations, narrowed to 151.6 billion yen from 188 billion yen, backed by an increase in subscribers. Group-wide cost-cutting measures using artificial intelligence also helped Rakuten Group return to an operating profit. Sales jumped 10.5 pct to 1,787.6 billion yen, a record high for the nine-month period. The company logged higher revenues in all segments, with the financial and mobile phone sectors posting especially rosy sales. Its online commerce operations saw increased use, thanks to a last-minute rush in demand before the introduction of restrictions on reward points offered for donations under the country’s “furusato nozei” hometown donation program. “Recovering group synergies and utilizing AI will be key” to improving earnings in the future, Rakuten Group Chairman, President and CEO Hiroshi Mikitani said. END [Copyright The Jiji Press, Ltd.]