- Rakuten‘s operating income for Q2 was 8.83 billion yen, falling short of the estimated 12.69 billion yen.
- The Internet services segment posted a profit of 17.86 billion yen before considering the mobile ecosystem, below the expected 20.22 billion yen.
- The Fintech segment reported a profit of 47.95 billion yen, surpassing the estimate of 46.17 billion yen.
- The Mobile segment recorded a significant loss of 45.37 billion yen before considering the mobile ecosystem.
- Rakuten‘s net loss stood at 50.96 billion yen, compared to the expected loss of 20.11 billion yen.
- Net sales for the company reached 596.37 billion yen, exceeding the estimate of 563.69 billion yen.
- Revenue from the Internet services segment, including intersegment revenue, was 324.54 billion yen, above the expected 319.97 billion yen.
- The Mobile segment’s revenue, including intersegment contributions, was 112.12 billion yen, slightly below the estimate of 114.17 billion yen.
- The Fintech segment achieved revenue of 232.68 billion yen, beating the estimate of 224.58 billion yen.
- No dividends were distributed, with a dividend of 0.0 yen declared.
- Analyst recommendations include 10 buys, 6 holds, and 1 sell.
Rakuten on Smartkarma
Analysts on Smartkarma have provided varied coverage of Rakuten, a company operating in the e-commerce and telecommunications sectors. Tech Supply Chain Tracker highlighted Rakuten‘s utilization of AI and O-RAN technology to reduce telecom costs and expand globally. This positive outlook aligns with Rakuten‘s focus on efficiency and growth in the industry.
On the contrary, Michael Causton‘s report points out Rakuten‘s challenges compared to Amazon in Japan’s e-commerce market. Despite slower growth in Japan, Amazon continues to outpace Rakuten, indicating a need for Rakuten to address competitive pressures and enhance its market position. Additionally, Trung Nguyen‘s analysis of Rakuten‘s FY 2024 results highlights solid revenue growth and earnings performance, showcasing the company’s ability to achieve its financial targets and strengthen its position in the market.
A look at Rakuten Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
The long-term outlook for Rakuten, as indicated by Smartkarma Smart Scores, shows a positive future for the company. With a strong focus on growth and value, Rakuten is positioned well to expand its business operations and increase its market share. The company’s growth score of 4 highlights its potential for future expansion and development in the digital space.
Despite lower scores in dividend and momentum, Rakuten‘s resilience score of 2 suggests that the company possesses the strength to withstand market fluctuations and challenges. Overall, Rakuten‘s Smart Scores paint a picture of a company with a solid foundation and promising growth prospects in the long run, making it an intriguing investment opportunity for those looking to capitalize on the digital services sector.
### Rakuten Group, Inc. provides Internet services. The Company offers Internet finance services which include “Rakuten Card” and “Rakuten Bank”. Rakuten Group also provides digital content services, including electronic book services. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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