[WATCH] Rakuten, Inc. Q3 FY2020 results: A new format for the new normal
Reflecting the unique climate of the times, Rakuten, Inc. reported its FY2020 third quarter financial results in a new format. Both ensuring social distance and combating the monotone feel and technical glitches that sometimes come with live-streamed events, Rakuten produced an entirely new eye-catching and informative video presentation that detailed the Group’s financial performance, while introducing some new faces as well.
Rakuten executives from across the company’s broad ecosystem of businesses and services gave a series of brief, yet in-depth presentations. While some faces were familiar, such as Rakuten Chairman and CEO Mickey Mikitani and Rakuten Mobile CTO Tareq Amin, the audience was introduced to executives responsible for many of Rakuten’s other services, including leaders from golf, logistics, credit card, payments, fashion and more. Following the video, executives joined financial analysts and media for a live Q&A.
Highlights from the most recent fiscal quarter include:
- Consolidated revenue: JPY 361.4 billion (+13.2% YoY) – Rakuten achieved double-digit growth in consolidated revenue, despite the impact of heightened consumer demand in Q3 FY2019 ahead of the consumption tax hike and the effects of this year’s global pandemic. Cumulative total revenue for Q1 through Q3 FY2020 was Rakuten’s highest ever.
- Rakuten Mobile launches unlimited 5G with no additional fees – Using the world’s first fully virtualized mobile network, Rakuten Mobile has been able to significantly reduce the cost of equipment and operation at their base stations, making it possible to pass the savings back to customers.
- FinTech Operating Income: JPY 22.3 billion (+34.9% YoY) – The FinTech segment experienced significant growth. Benefiting from integration with the Rakuten Ecosystem, Rakuten Securities is growing rapidly and has led the industry for two years running with the highest number of newly-opened accounts. Rakuten Card also reached a new record of 20 million cardholders in Japan this year.
While much of the presentation was focused on forward-looking plans, Mikitani also found opportunity to look back on how far the company has come in just 23 years.
“At the time of our founding, no one believed people would buy things on the internet, but we made the impossible possible through innovation. We redefined expectations. With tremendous speed, we’ve delivered a constant stream of innovation and we’re not allowing the pace to slow down in our 24th year since foundation,” says Mikitani. “Rakuten is going to take on new challenges. We’re on track to becoming the number one tech company in Japan and a leader in the global telecom industry.”
For more from Mikitani and Rakuten’s leadership team, as well as business-by-business breakdowns of Rakuten’s Q3 FY2020 performance, watch the video linked above.
