Rakuten Earnings: Smoother Sailing Ahead as Mobile EBITDA Expected to Turn Profitable

Rakuten recorded a full-year operating profit for the first time in five years for fiscal 2024, which was ahead of our expectations for 2025. The improvements across all segments were within our expectations, excluding a one-time gain of JPY 107 billion. For 2025, Rakuten aims to achieve full-year non-GAAP EBITDA profitability for Rakuten Mobile and maintain full-year consolidated operating profit, which was in line with our previous estimates. We broadly maintain our forecasts for the medium term as we anticipate Rakuten’s cost discipline and steady growth in mobile subscribers to drive profit growth in the coming years. We keep our fair value estimate at JPY 990 and believe shares are currently fairly valued.