Double-digit revenue growth: Rakuten’s 2022 Full Year and Q4 Results are in
On February 14, Rakuten announced financial results for the fiscal year 2022 and fourth quarter of 2022, from its headquarters in Tokyo. Chairman and CEO Mickey Mikitani and leaders from the Rakuten Group shared highlights from the past year from the company’s diverse portfolio of more than 70 services.
Rakuten Ecosystem reaches new heights in 2022
“More than 39 million monthly active users now use Rakuten Group’s services in Japan – an increase of 11.2% year on year. What’s more, loyal customers using two or more services in the Rakuten Ecosystem reached nearly 76%.”Mickey Mikitani, Rakuten Group Chairman & CEO
The Rakuten Group had a standout year in 2022, with double-digit revenue growth across all three of its segments: Internet Services, Fintech and Mobile. The company achieved a record-high consolidated revenue of 1.9 trillion yen, representing a significant increase of 14.6% year-on-year (YoY).
“More than 39 million monthly active users now use Rakuten Group’s services in Japan – an increase of 11.2% year on year. What’s more, loyal customers using two or more services in the Rakuten Ecosystem reached nearly 76%,” pointed Mikitani in regard to the growth in the Rakuten Ecosystem’s customer base in the past year.
This was due in part to strong growth in the company’s domestic e-commerce Non-GAAP operating income, which reached 95.6 billion yen, an increase of 36.6% compared to 2021. The expansion of the Rakuten Ecosystem’s customer base was also evident, with average monthly active users in Japan surpassing 39 million, a YoY increase of 11.2%.
Rakuten Travel, Rakuten Fashion and Rakuten Rewards deliver standout performance
In 2022, the Internet Services segment saw revenue growth of +8.7% compared with the previous year, with revenue reaching 1,086 billion yen.
This success was fueled by robust domestic e-commerce gross merchandise sales (GMS), which grew by 12.3% YoY, demonstrating continued growth even more than one full year since the impact of the COVID-19 pandemic.
Rakuten Travel achieved double-digit growth in domestic gross transaction value (GTV) compared to 2019, while Rakuten’s fashion business expanded even further, surpassing 1 trillion yen in GMS in 2022.
Other standout performers included the U.S.-based cashback service Rakuten Rewards, which recently made headlines with its Super Bowl commercial starring Alicia Silverstone.
Rakuten Rewards achieved significant growth in both revenue and profit in 2022, recording revenue of 991 million USD, up 13.3% YoY, and Non-GAAP operating income of 62.8 million USD, up 12% YoY, driven by successful marketing initiatives and continued momentum in consumer behavior trends.
Rakuten Card on track for “Triple Three” mid-term goals
In the FinTech segment, Mikitani commented that “Rakuten Card, Rakuten Bank, Rakuten Securities and Rakuten Insurance all performed well with profit growth across the board. Non-GAAP operating income for the FinTech segment was up 10.8% from last year.” The growth in Rakuten Card was in line with the company’s “Triple Three” mid-term goals of 30 million cards issued, 30 trillion yen in GTV and a 30% GTV market share.
Notably, both Rakuten Bank and Rakuten Securities showed steady growth in their customer base, reaching respective new highs of 13.39 million individual customer accounts and 8.64 million general securities accounts.
Mobile continues to enhance synergies for the ecosystem
In 2022, the Mobile business posted a significant increase in revenue to 368.7 billion yen (+62% YoY). The business continues to contribute to greater synergies and enhanced membership value within the Rakuten Ecosystem, with the average number of new services used per Rakuten Mobile subscriber increasing by 2.61 services in 2022. And for subscribers, the average annual purchase amount on Rakuten Ichiba increased 49% after subscribing to Rakuten Mobile.
“We (Rakuten) are the only real alternative to legacy platforms across the world. With over 300,000 cells on the air globally, Rakuten is the largest Open RAN software provider in the world. This is very healthy to see as far as future opportunities are concerned.”Tareq Amin, Rakuten Mobile & Rakuten Symphony CEO
For Rakuten’s business customers in Japan, the company had exciting news. On January 30, 2023, Rakuten Mobile launched the Rakuten Mobile Business Plan, a service that caters for corporate customers. More than 600 businesses are already using the service, and the number of business subscribers is forecast to continue to increase.
Meanwhile, Rakuten Mobile and Rakuten Symphony CEO Tareq Amin shared his excitement for future possibilities on the global stage. “We (Rakuten) are the only real alternative to legacy platforms across the world. With over 300,000 cells on the air globally, Rakuten is the largest Open RAN software provider in the world. This is very healthy to see as far as future opportunities are concerned.”
For more from Mikitani and Rakuten’s leadership team, as well as business-by-business breakdowns of Rakuten’s FY2022 full-year and fourth-quarter performance, see here.
*Domestic e-commerce GMS = Combined transaction amount for Rakuten Ichiba, Rakuten Travel (GTV on checkout basis), Rakuten Books, Rakuten Books network, Rakuten Kobo (domestic), golf business, Rakuten Fashion, Rakuten Dream businesses, Rakuten Beauty, Rakuten Delivery, Rakuten 24 and other first-party daily necessities shops, Rakuten Car, Rakuten Rakuma, Rakuten Rebates, Rakuten Seiyu Netsuper, cross border trading, etc. Excludes some tax-exempt businesses, includes consumption tax.