Rakuten Logs 1st Jan.-June Net Loss since 2011
Tokyo, Aug. 11 (Jiji Press)--Japanese e-commerce giant Rakuten Inc. <4755> on Tuesday reported its first group net loss for January-June since 2011 mainly due to heavy costs for upfront investment.
For the first half, Rakuten incurred a loss of 27,485 million yen, compared with a profit of 100,249 million yen a year before.
Rakuten made sizable investment related to this year's launch of its full-scale mobile phone service and the creation of its own distribution networks for goods sold online.
Meanwhile, revenue grew 15.7 pct to a record 678,768 million yen. Behind the growth was a year-on-year jump of 48 pct in the value of transactions on its Rakuten Ichiba cybermall and other e-commerce websites in April-June thanks to at-home consumption amid the coronavirus crisis.
Rakuten has launched a campaign to make its mobile phone service free of communications charges in the first year for the first three million subscribers.
[Copyright The Jiji Press, Ltd.]