The following is a summary of the Rakuten Group, Inc. (RKUNY) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Rakuten Group's revenue increased by 8% year-on-year in Q1 2024, reaching ¥513.6 billion.

• Non-GAAP operating income improved by ¥43.5 billion year-on-year.

• Positive results seen in Rakuten Card's profitability, Rakuten Payment turned profitable, and Rakuten Mobile's financials showing growth with an improved EBITDA of ¥52.8 billion.

• Corporate bonds of US$2 billion and ¥50 billion were issued to enhance liquidity.

• The company has a financial strategy in place to reduce the cash conversion cycle across the entire company aiming at generating a minimum of ¥50 billion non-fintech cash.

Business Progress:

• Rakuten has seen progress in domestic market growth, overseas operations, and shaping its fintech segment with a strong market position maintained by Rakuten Card.

• Investments in network expansions, 5G initiative, and network density are set in place for future business development.

• Through the integration of Robin.io's technology with Rakuten's 1 Cloud, the company aims to transform them both into the Rakuten Domestic Cloud.

• Plans to leverage AI in operations, improve customer support logistics, advertisement, and pricing optimization processes.

• Rakuten aims to establish self-funding by 2024 to realize free cash flow in the future and increase ARPU with the adoption of its 5G network and strategic services bundling.

• Rakuten is looking at shifting from heavily relying on points for e-commerce to investing in a healthy user base for better revenue. They are planning to make delivery services more efficient and increase the use of AI in their approach to sustainability.

More details: Rakuten Group (ADR) IR

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