Rakuten Posts 35-B.-Yen Net Loss in Jan.-March

Economy

Tokyo, May 13 (Jiji Press)--Major Japanese cybermall operator Rakuten Inc. <4755> said Wednesday that it incurred a group net loss of 35,319 million yen in January-March, against the year-before net profit of 104,981 million yen.

The company's January-March bottom line fell into the red for the first time since 2002. The latest net loss stemmed from upfront investment in its mobile phone business, which was fully launched last month.

Rakuten's operating revenue in the first quarter of its current business year to December grew 18.2 pct year on year to 331,443 million yen. Its Rakuten Ichiba cybermall fared well on the back of brisk demand from consumers who stayed home amid the coronavirus pandemic.

But the company's travel booking website and professional sports businesses performed poorly. These sectors "will take a substantial time to recover," Rakuten President and Chairman Hiroshi Mikitani told a news conference.

Rakuten is conducting a campaign in which it will charge no communication fees for the first year to the first three million subscribers to its mobile phone service.

[Copyright The Jiji Press, Ltd.]

Jiji Press