The topic this time is:
Crunch Time!! - Rakuten's mobile business
I would like to share the contents of the article of the ITmedia Business ONLiNE posted on February 16.
The title is: Rakuten's mobile business is further widening its losses. When is the right time to improve profitability?
The cell phone business requires upfront investment to build up its service area, and it is inevitable that the business will continue to lose money in the beginning.
However, it is time to know the prospects for a return to profitability.
Rakuten Group held a financial-results briefing for the full fiscal year of 2021 (January-December 2021) on February 14.
Consolidated sales revenue for fiscal 2021 will be 1,681.757 billion yen, up 15.5% from the previous year.
Operating loss under IFRS was 194.726 billion yen due to investments in base station development in the cell phone business.
In this financial results briefing, there was no mention of the timing or factors behind the return to profitability.
However, Hiroshi Mikitani, President of Rakuten Group, and Yoshihisa Yamada, President of Rakuten Mobile, stated that they expect earnings to bottom out in the first quarter of 2022 and improve in the second quarter of 2022 and beyond.
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