RKUNY - Earnings call transcript Q2 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon ladies and gentleman and thank you for joining Rakuten’s 2022 Second Quarter Financial Results Meeting.

We have disclosed the latest consolidated financial reports at 3 P.M. today.

You can view this data on our corporate website’s page for investors along with the presentation documents used in this meeting. Please allow me to introduce the speaker Hiroshi Mikitani, First Mikitani will give a presentation about the latest financial results. hear you Can please? me? Miki,

Hiroshi Mikitani

that ladies Yes. hope some this you There at meeting been understand. gentleman. members Good is last that I online therefore, afternoon staff And have have COVID-XX. arranged and contract moment. have we an the contracted

financial further would quarter without of Rakuten start the like So meeting to Group. ado, second I results

in So, you on update then I first will of all, progress highlight the made of segments. the earnings and different the

very Amazon the steady, especially XX.X% for companies group, this pre-COVID every domestic but and EC period, and highlight have Other in year-on-year for been been So the Europe. period. to a registered very registered year. has USA growth of results are compared XX% And ecommerce actually most our CAGR favorable, global EC rewards struggling plus global for other struggling was companies during growth on Rakuten level part,

strong. has our quite grow However, been GMS

XX.X%. That performance era mobile the a at level. really number structure for but leveraged. is come we shopping, new opening for including GTV year-on a registered high well X, that and companies horizon business, have accounts. up it steady new have -year plus is had card, growth new is far that all we And XX% the XX.X% is growth back almost Ginko we’re these the Bank a terms Card running year-on-year. holders the FinTech is So very for technology cost as by card will securities, a payment, we as and of the especially to global in this and highly stably FinTech and growth efficient,

consolidated of and customers. very will course, X.XX that we player as being XX.X plus for and leveraged I very card Japanese in billion year-on-year XX.X% year-on-year plus revenue Rakuten about GTV winning terms issued trillion, shopping for operating Japanese so yen is million in so And already, GMS number almost steady. Rakuten security will X future, XX.X% growth we overseas year-on-year year-on-year, view. become XX.X% so XX.X% is domestic and XX Rakuten income the in of and mobile X.XX good And trillion card excluding X almost XX.X% that growth is XX% it for key of as KPIs GTV, XX.X% mobile mentioned our million year-on-year general And horizon and yen, Therefore, non-GAAP growth year-on-year. which our a in the global is it’s Rakuten’s is Japanese is ecommerce year-on-year actually well. ecosystem new for million, over go accounts of a yen, so

account So in order And is general increase Rakuten percentage leveraged so accounts, Rakuten growth numbers. almost XX year-on-year to for now. million ecosystem XX.X% bank

very So as well. growth here steady

part XX.X% the now XX.X% and growth like ecommerce in sales I on to growth. Now, focus would Japan

this is so operating FinTech that operating have income the [XX.X%] we in billion. So income increase increased XX.X and

And will mobile billion bottoming of there made For me. forward. going this be will so this here term and deficit on, improvements yen quarter. or this be segment, Excuse XXX from out

is how XG explain let coverage there redundancy structure. just cases Rakuten How to other a in track me on we faults is the we why that year then will stations, question is that. have higher major XX,XXX -- little XX,XXX parts bit. reach mobile failure. in other stable been that, XX% of can finally, there But enable towards it There we XXXX that already have network? a first such are Rakuten have to And a designed population and are or been the such are four one carriers. and we coverage what network So, for aiming is mobile, failure some by are or it has And

software, using easily is this everything time. be is components and all monitored therefore, real therefore, cloud, the real and performance using time for And visualized the We’re can their done us.

So, done the third And virtualization. point is real time. monitoring is

might much stance. as can to That’s very replica is software possible. our down human as So, various be go but made easily. basic minimized a be And intervention

Unidentified Company Representative

And focused on level provide and in mobile have four unparalleled in that redundancy. the Number the network, Rakuten primary building we to world. is so, X is resiliency reliability areas of

We think not That’s changes and that architecture you, in in mobile reliability in network And observability, interruption and mobile manual for our all the that deliver X quality world and operators revolution to of X, due to latency the resiliency focus appliance, is to Through Japan. any have the we driven Number new to able Number runs better which the the architecture makes network we avoid our networks existing human virtualization, networks Our the this mobile network and and ability major of mobile Rakuten are real Number the us right relentless configuration what software of network provide reliability could time Miki. AI/ML we done worldwide. X,XXXs X, do error. ability observe functions hardware across automation, manage complex than across on have And one gives world. virtualization. in exist we’re Rakuten technology is DNA this models function. to common to it of hardware network that unique. unbelievable the think of network. architecture, Thank replicate the happen network XXXXs level does any on manage is few in the of machine XXXs is

Hiroshi Mikitani

for used users. questions you or if please to you this ask as So be later X gigabyte any have those about know, for And later. part, further free do less might

be zero a now, improved case, will as Xst that that of will And the sales before. that are XX% finishing totally campaign. user October, longer a compared of will by per the case by September gone. end more on of to no in Well basis we monthly be September, be charge as than However, of

of plans course expansion ARPU increased content option be will services. basis, In the expansion addition, of on of a per as well user via as

measures of are on planning improve the out some that ARPU. we’re the to carrying these So

So, to come mobile back we later. will

So let’s move on.

Unidentified Company Representative

yen previous the segment to the year was for move as we comparing we we and going profitability And we next a bottom, then and are want month profit a forward aiming As bottom improvement made. is billion our was the profit to the then in quarter XX that improve make and single are to last quarter in the at. what

the talk for So like mobile, domestic as before about would and earlier. going to FinTech EC and I as the the mentioned EC, to domestic

revenue the trillion which among XXX is And formula. operating That’s the looking they more segment then to GMS. is billion XXX the the I in higher than income And talk billion higher closer billion yen. mostly comparing domestic is GMS, [Indiscernible] at so before, [Indiscernible]. than golden grew then yen, that, then higher year and usually So to which and have GMS is this growth than X the XXX And we EC and grow what agreement, this GMS. it this

go Now, we are in that. Ichiba. And each Rakuten detail me on realizing let the business

retail BA-X struggling now much the spread to some however, industry been Rakuten COVID we so see back we grew For compared have and them it -- the again. the higher. then And Ichiba

made time so reduction online pretty recovery And performing Rakuten X.X% and the However, then well. comparing that peak supermarket super-- to we next for far. it’s the fashion. the And as is

And is the comparing So supermarket Rakuten growing the point. to department as business well. is well store these specialized fashion also pretty then stores and them and the a

And So GORA Ichiba plus been plus. Fashion XX.X%. EC reservation Rakuten use Rakuten Rakuten And use Rakuten elaborate And then is the Ichiba then, then site Rakuten increasing and combination and the grew cross and XX.X%. users and by And can Ichiba by travel business salon Rakuten beauty as cross the XX.X% and hair salon Rakuten reservation And using made the within by or travel are Rakuten has growing, golf the EC the more. the services grew XX.X%. and supermarket it’s XX.X%. online be let both into Rakuten me by beauty the

that’s impression. So domestic, through total the made over more they Travel, our Rakuten reservation, XX%

Travel which achieved. period is around to So seventh XXXX, comparing the then about went rate already wave the we XX% up pre-COVID of by And the illustration COVID-XX. pre-COVID a XX% XX.X%, of period now So sometimes, reservation

to have ledger. So, will monitor reservation the on we we mainly closely, actually,

see next then the and super and is of I will have make online XX.X% think become we this we this is recovery if supermarket that probably one basis. And YoY area about So, in the GMS stronger. become much the companies plus more leading

goal and And will of [Indiscernible]. like that nationwide comparing So the we sector center yen focusing here. what the the Ichiba I which we platform improve a plus Kanagawa in the jointly [Indiscernible] next [Indiscernible] goal, about the say the are logistic supermarket you And And as and And just profitability in providing GMS shipping is here, XXX expanded to and logistics that YoY XXXX. to With and Osaka the would is billion now the be XX.X% center. of our logistics from and from we business that. the we have Yokohama fashion. have the in to on support that

of town Ichiba this Rakuten area refer in So people combined to fashion and [Indiscernible] them. often, Rakuten two

and fashion the GMS to billion yen related XXX reach So which total is then yen. billion XXX is about

also but we growth the sustaining So just not rate. are scale,

industry, fashion so Rakuten stronger. the in become presence, So

So, next the is logistics. about

Rakuten universal venture JP And utilize a Japan service then provide a network joint existing Post so result, So and logistics. this super ready. with a the as can the we is as services that’s

there are logistics, than is cost. the this this logistics, using then So, and X,XXX more have and we have are we to reduce our merchants

RFC. the system and Rakuten logistics the is But tend recently, Japan warehouse, So, to use which we JP Post logistics. existing the

reduce we allow So, the which station, us costs direct to to are a substantially. delivery delivery

what to threshold. a kind So, maintain able rate, of is adoption the is and to biggest shipping growth free growth of factor we this are that

shipping the threshold. this now, merchants adopted So, of free XX.X%

So, comparing adopted want upon those the adopt. then, our this it’s And cost, not to merchants this for XX%. should think touched achieve I XX% at the to we who the shipping rate, target calendar Rakuten do this. adoption have improving, I of And Ichiba, in end who other above the then before have this as year then was least once

different gross growth merchant. points services, Rakuten driver of And the particularly our between XX.X of biggest is those the other this difference So, internet rate two businesses. of become one And types [Indiscernible].

we penetration due pretty is given yen. XX% as the Viva, Unfortunately, rate Ukraine you so, it’s Viva well. the billion actually situation, that? the these be about last diver In year generated in which revenue nations, however, Russia, XX.X%, using are grown and know, many XX Ukraine when Ukraine situation So, not revenue in users anticipated users would the by performing two And to smartphone is that. this from have of

year. not generate and excluded, is million revenue then profit So initially previous yen were we XXX from comparing able assumed and should if the it from February Viva about this onward, And however, to big to we above here. the be

see about And for the Asians. would billion Capital still about maybe the have Rakuten comparing our but under XXX and investment so XX%. yen the was reservation remaining exited And we this billion billion and some next XXX So basis, business capital to conducted this is skate to downtrend, working capital although is the we to it’s small, about is then made. market the Venture very the and yen is competitor is investment about amount the I XXX yen and

our So of in environment is challenging steady investment businesses, progress today. we under see terms the

Next is FinTech.

steadily a segment non-GAAP the X.X% at talked credit for when I operating play. So segment. and Unfortunately, is the you revenue that Highlands takes GTV is increase increase And formula this card if it in for about think XX% golden growing. about income

so XX.X% it’s increase revenue golden increase in in but in And formula operating X.X% and income. the included in not the

about XX.X yen. billion So,

say would I Rakuten year-on-year increase. XX.X% So, is transaction very very, value doing Card shopping well

the a trillion basis increase we think that largest almost, Japanese and in has you. X.X realized. been by three with continuous number yen, And XX.X% can is period far on the that So really CAGR year share I

related daily businesses. necessities housing or habitation related So not ecommerce, but just also and

are Our think we and showing of and online Rakuten is the and the two of I own are here. growth being a and results offline really combination worth that leveraging

XXX XX year but as well is have we million number e-bank, several announced purchased the that XX% mid announced March to deposit target. list will million is When this long-term we X.X it from growth Ginkgo, Rakuten to to the balance and is XX.X reach in we vision that and was this, expected we approximately trillion trillion billion. the Now XX have

that so was cash grown has it balance then think but I much. the

profit XXXX target to So or lot of XXX reach the is growth ordinary approximately, ordinary the for potential profit. it further income to the QX, will increase for it billion, that XXX billion. is that I a there’s billion is reach expected think and and about approximately was XX% In ordinary CAGR but XX

a the I announced for take Bank, disclosed very can this it’s steadily. or will on say of being growing but closer it, a hope quarter, I is at So you occasion. results look I Rakuten that for separate the think

Next is Rakuten Securities.

XX.X% compared trillion, is to So trading an shown And X.XX so and under million already And XX.X% X.X market accounts share in domestic year-on-year Japan here. retail again, is so plus equities the XX.X%. last XX.X of is increase growth growth, management year points. that year-on-year share asset

we have, has surface, capital is like have to and increasing larger on top with not, or entire and I should one the promoted Insurance larger. the more would and getting steadily. potential So, income. sheet for growing been that FinTech, we position been and Group is we acquired, the very more And for say have and balance digital Rakuten we our gap DX but group others. the profit That’s wise, revenue for transformation expand And profits fact. the the the being well, also, overall

in already the Rakuten preparing we month, for middle shares we for -- Securities basically, during of next Therefore year, that Exchange. So with for IPO. targeting Stock are for Holdings, IPO. we Rakuten is of applied Bank already an the for in And the Tokyo have are July last the listing

So mobile. next is

mentioned [Indiscernible] today. world world and one really information structure, from and first in cost the drawing first upon the Nokia, South beginning, attention and is touch is has the the Finland So as about fully the portion. and Samsung, China. Ericsson, technology, Symphony security And this Rakuten I virtualized Korea important Sweden at become This later will the

happen. such So when and think software technologies, have with Japan so way the I U.S. Rakuten it customer also a the and are coverage, do that the which comes high increasing quality. power to Group, Rakuten U.S. to in and that we the we has Sony, can the and technology, made Symphony think you network is acquisition And trying

the redirecting other have And the move we or Mobile the this overwhelming would the follow have this become card smartphone been path this and in same has card So so market industry. become the Rakuten we X, to realizing and into or we the entrance market. industry decreased mobile price to business with number like as

then So other is the turning want which words. what to that and Rakuten is the announced we mobile in July, Mobile, at. democratize or we UN-LIMIT what market is the strategy we point aiming in VII, this are And evolution biggest

a years So them two Symphony and just a years in with services. two board and ago, and also, end, we needed. is we these decided order we started, our just to to strategy the half Rakuten Mobile many started go we up need it with not and But have them. we had the Therefore, users technology, ago, use a and we have user, And to export to of this. pricing zero end came half

items And using in So them. Rakuten have purchased basically, Card segments, we of Group Rakuten one Rakuten focus the the want who three Ecosystem, many to have the is we Ichiba.

as to we acquired users, strengthen this myself, the that point ecosystem can add mobile fee. and point many your a including know the this ecosystem would pay we in users people many so So use

more more many than of using point So data free people XX the users But and there become above zero the a mobile smart actually who or are as XXX service giga because can using end actually they them use and users of users. for users. gigabyte are the using

and for then Rakuten heavy users. also the So smart users Ecosystems your and data customers,

the the and and will and ARPU. And strategy marketing try target our So something much will then price be to these advantage we want to then new. improve three more we quality segments increase

price. is are UN-LIMIT that, our very price and price there MNOs is for in a after but other amount then Rakuten MNOs And low. low brands, the MNO, overwhelmingly VII most the So, range the the

So using heavy users understand. single is Rakuten UN-LIMIT plan easy which the heavy it’s users data to VII, a for

usually sizeable but X they So gain this vary the download so means let’s they X to use the say gigabytes.

is quite XX.X been, prices. other then has data of of increasing. data Therefore, this have Rakuten don’t the and gigabyte. democratizing Mobile the to is they much is monthly used companies that and price context, the And per much how think the data X.X because it different gigabyte average other is is we So range carriers the person average how attractive are about in is which

On the be right and hand, this provided data this and is Miki the by the about estimation total was will the changing. usage

technology, to the comparing initial And existing XX% achieved So app. the you higher this. use and CapEx the reduction we data plus structure OpEx more the reduction XX% have cost

result so was research the As results, for this provided by data. quality, [Indiscernible] investigation the

is network that we countries Asian, are evaluated comparing research. other to So quality how to by high is this network our very

the then we are Femto. hand, installing of connectivity the we Rakuten And and actually and Casa, Casa other them, On installed. XXX,XXX need indoor the strengthen Rakuten is now which to was

we would so per skyscraper, network we we high the And see the was weak feedback received. than floors that connectivity then a XXX,XXX higher like to for cover some as and

the rise use the And expand then want the asset actually use already right antenna about the promoting the been as stations, XXXX, then have the is or supported, And subways, diagram XX for the building connectivity. we XX% we base capacity, sequentially. And and outside for support And progressing. CapEx will network floors, but we are high capitalization was specified billion yen. the as was but XXX which to then XX the CapEx then can was from basic, you see billion. billion, onward for XXX as buildings to so and are XXX%. standing cover And So here going over next spring the to we we to the above

would is it and XXX in decreasing. this then about year will onward yen billion and investment XXXX it So reducing the this be be amount

very the of chart. one is chart important this So

based on the is application. this So

include churn. does this the not So

XX achieved would Tokyo per of as have application rate. the world So X.X% already

or So areas X%. X.X% Rakuten, the Tokyo coverage subscribe is XX less of the to XX% but still than world population, some

will to the going up be station So XX,XXX.

So to we cover in XX%. each of want prefecture, the around

So application million people. if this get rate and is XX case, this the is a would then closer to that hypothesis

is a very this So important point.

So business half get we’ve years. only this into and a two

been to far. according XX the the well have And then or we XX,XXX stations we doing basis, application and million people. once want We these then base so reach achieve the to

the for have the entire As so marketing, we targeting far, been nation.

we region to and XX% by the would like did the test see to marketing XX%. rate However, pilot we strengthen increase application to we specific [Indiscernible] the

inside events, advertisement and activities been the we also conduct like move So approaching train, specific as we the will we have these the the but marketing hosting including forward. the or to nationwide region

Ecosystem. So Rakuten I the talked about synergy with

we I rather. that to it’s would But are continuous is It new and much million the in think Mobile to Rakuten that XX% future. as GMS words unrealistic. envision. get so total Ichiba Rakuten Ecosystem I speak, purchase Rakuten increase XX% not I’ve actually is growth little is and times coming the users will expected Rakuten result. key. so something likely will XX% in more into become among population, is think In through can And program be XX% using Mobile for grown the if therefore XX in are once then this it rather in prime we or then to like Mobile that the hold them and to subscribers subscribers, synergistic XX.X% channel than increase is has a of the overall. for them for it to we Rakuten Rakuten X%. Mobile XX% Mobile And of Rakuten bring other mobile a case Their important. And used any of in to as then people It XX%. up Rakuten mentioned they effects a many subscribers,

hold use? so users Ichiba card. users people and in that Rakuten to XX% or by new -- Point now use specific to And do what place services those a actually, Rakuten Card XX%, those Mobile start Rakuten Rakuten subscribers the of tend XX% well, Rakuten and Mobile first Rakuten they these using of the subscribers Card are for in

three more time, by in than used person. one year’s the are services So same

have was paying-off. but targeted that think would it reversed the be of we recently, So strategy such until what this is I mobile

been than might How increase is Well, you and item true that the or is Now, use X churn for used have churn. be amongst us? many wondering some users. that next in less to that those users there gigabytes? the it left these concerned Yes, about has

of are usage them not XX% about perfect. people. where data for these words, gigabytes. those people there XX% churn than X However, was of other And areas is also In are users who some less yen coverage zero

So, I’m in a in issue gone soon. paid customers, coverage. to are is, that And shift What improvements such net making of is this that to is Therefore, we customers. say the resolving will paying increase paying be but users. there for here there trying

And and is So using And also plus also increases there X.X line tend words, segments that, win higher to gross earnest. amongst challenge increased and of those than who these customers. cost data. are using are has using makes Rakuten Rakuten wise VII X.X in use Mobile profit And and is a of young is wise forward a increase XXs again, heavy XXs. young after to they whole users by young or it points main UN-LIMIT this XX the Mobile there a lot difference. then people gigabytes how of a people point disclosed and the In And lot other was X.X going group are points. less

XXX use might higher. gigabytes people or Some

yen yen charge. XX,XXX data, X,XXX what same other yen data charge that amount yen but is of might these be might per month charge. the is carrier for For users carriers, X,XXX what in the heavy XX,XXX But it them we we or

so of be other necessity Rakuten second carriers tried. about so some minutes. might activated can There were be application. in for five can and Mobile major in same people, some Software a day become new very is ESIM use, we therefore what things for line example, on activation failure the

important. is ESIM so And very also

Rakuten expensive. If mobile you lines two course will be less of have

recommend corporate Carrier the line steadily would is customers. starting already is we from And also and started new October or and already enterprise POC for Rakuten we’re these main is winning what started Mobile Email Rakuten customers I officially services enterprise everybody. but make So are

yen settled left loss, go to that the Now churn go in over us users going and bit words, two And In switch yen. or older be and to less future. by already before, year they for it other but this November then steps. however, this and to number is or there as improved the done but winning forward have has you carrier November as how quite steps before apply and back was we said Communication the a by zero and profit Ministry also for have to of by Internal be will portability data you will Quarter churn for see and there you course, X a the billion a will might mobile before led of it QX, customers were going portability accelerate switched bottom -stop new as through XX promised two this is procedure I to was July we to into the number on it one

Network. the And translating factor is traffic there X is X% and of but that so, also X% own now behind the very Rakuten and is and maximum so options And one in into that doing the services network expansion is subscription to we acquisition services elements are expanding some limit gigabyte and roaming, area improvements. our upper total the is there further and that improvement called for stopped of well is are and

result and no roaming cost will limits be So, such as be well. upper dramatically as will there a reduced

the So, these are factors.

Unidentified Company Representative

Rakuten Symphony.

fully acquired on attention drew other native words, it global virtualized was from market So, in that software Innoeye. in XXXX aligned cloud and with world network our running we first launched

design, then link, software mobile which And base application [Indiscernible] year and So by the this things in then and the various edge evolving. application the management cloud Altiostar operation. [Indiscernible] operators company experiences, last the architecture, signup done the cutting or is [Indiscernible] acquired. related station companies including a were These or network and is a

great a result is As of this a chart.

work understand they be the to might they to so from solution. of Rakuten difficult full of maybe almost usually of them So with investor’s stock software and however, case point operated cheap it Symphony, high the But other Rakuten a partner a in to view. performing Mobile, company outsource then and have

cloud users one this be And or to highlight to that word So customer we handling let’s this on of same thing say is and and linked network users, software biggest can interface. the to various charging platform.

it’s attention So experience, in now intelligent intelligent overseas operation. paying operation the like And and using actually are then enriched. digital AT&T this are this they

in we and So, or using software represent about network technology think the existing and this the that XXX well is position player who the that today this a is among become is we Japan can German SaaS They I have or pipeline XXX Rakuten have then end–to-end. customers company. XX are

for your this so existing pipeline by region. So this just started. customers the information a other is the boosts company test, user XXX In big project. words, is And friendly the this pipeline trial that real by region in

the technology this point about achieved my been of AI text speed through operation the technology sec I performance. speed when the is so achieved sec sometimes basis they’ve world mili what or which a was overseas time is view, Rakuten achieved been ask software us first Software, and case Symphony’s investors then per we stable -- latency then from in X cost inquire real and architecture through in commercialized the unbelievably business. great has And learned we they believe. efficiency at is content have then gigabit the And this X and the and

the of X.X million million here million XX VIKI, plus have the and Southeast Kobo, from plus billion we particularly and and can and XX% and about YoY XX business Viber, in Asia. about users XX.X%, good a registered and and see TV, days, YoY, this about we you performance As which see Rakuten profitable users number these is about is XX also

the has understand and to and not and increasing, been user already. in introduced as then the we Ukraine, the QX the but Rewards, growing revenue plus of have to analyst is X%, number unfortunately, However, GMS although situation the Rakuten

major So EC, obviously the the US struggling. providers

we Rewards grew but a the Rakuten presentation. as closing last steadily. for In ESG topic the sustainability before month, is the However, the

the So and we and selected the the of billion a then is yen, have constituent major as beyond And global donation X.X Global Compact, it this, Nations we second we joined United Aid, already one Humanitarian already. as went that donation, indices. been amount a this ESG of the Ukraine made

So of our as employees end the branding responsibility company, this well a pride social users. and also to a also the and is our

ESG. So to constituent is this measure a important really as including selected global these meaning of be

to So not on Rakuten friendly things. the promote so alternative including the these our just to are but Group a that continuous including least. energy, basis, And last we for eco energy shift the and the not partners, alternative want

we toward So And end. now further growth that to developing make the XXXX. are to plan want we

a Sorry very you concludes This much you very Thank presentation. you presentation. for listening. much. my long for Thank

Unidentified Company Representative

you. Thank

So this Thank briefing end the financial results of is very section. the you much.

Operator

very Kazunori joining Kenji I’d briefing Takeda. session Ladies to we quarter on you the on like Masayuki the Hirose, From financial second with stage. here Hiroshi Q&A introduce Group for session. a thank press. much the Mikitani, Hosaka, have XXXX us results Rakuten people and gentlemen, like on to would [Indiscernible],

like this the the now to are members how explain five will these I’d team. So proceed. management from

do be will language session answer not and of audio. the please the menu bar. question choose the Please choice simultaneously mute your the So And from choose original translated.

from you speakers relevant to like please the and sound the domain website And voice to material. need if and be that will go raise the hand, down please look English the interpreters the hear translation material question. at would if ask a your main During will you download you volume will

question in and well the asking question then that question your and raise input you’re the also as un-muted you’re is at questions limit one ask after using And of And Q&A If PC bottom shown please also name your the the smartphones, you only. sure to forum And And press, before please which called. very for screen. can is that the click at on function. two time. actually financial ask them and please results regarding also your make using more the hand for the

any raise hand. have you If [Indiscernible]. question your Mr. you. Thank please

Unidentified Analyst

all first to Mr. of question I business. have mobile one Mikitani, progress

discontinued, down. maybe. to year been think has But plan your is the last there of I earlier, mentioned number you subscriber As compared

subscribers? level IPO, what Rakuten your the Bank thinking announced they the Securities evaluation one been behind have is already. current And is number So of other the question of and of

of apparent be that. you’re investors being last year. maybe share like despite it. think subsidiary the governance, But to of for its is And in about So the that, I don’t listed doing IPO it or terms price used what half

So cancellation of what or structure maybe, reason? the conglomerate is the is it of because the

Hiroshi Mikitani

rate. used lot a but to XX% know, real base. you such users, the That excluding as is Mobile, that there quite be about growth is subscription of users, a

So of from we network started scratch. our course,

by would So offering we plans. had to true start very generous it more to But life. make like to we

XX% And plus yen it’s increase. excluded so users zero

the that we not going forward so for like transformation really customer users of speak, to it’s have will But total will the be think So base. our I user, business. sound

areas. more in good concentration So earlier, that areas step. the mentioned amongst that a urban there’s some And was as I think I different differences are there

of area promoted network, specific And also be marketing area course, So will improved strengthened. and be will further.

So , million Rakuten like as realize XX yen, And here. people are to possible. listing there as what subsidiary subscribe, is soon different we would that aspects

profitable. really that the group of in each think is companies the I Group Rakuten now. are diversified And

internet called well. And there so, for such people think I investors any these so conglomerateanalysts conglomerate, is don’t as

things clearer We’re trying to to make and easier see.

Bank of expand trying actually can especially more one by business our scope And capital, Rakuten objective. we the to realize. So we’re having what is that’s

now So is X%. the interest rate

sure how necessary within to So be to risk to high we’re not little much to but Rakuten Group. little really want high, risk return. the we take a a Well, make that going synergy measures trying there’s too have and

Card. realized, guidance we for or therefore, can example. it words, and is Travel and have things this understand. security company. data companies, clearer data to leveraged to story. in want I that brands therefore our Rakuten decided synergy leveraged this and But be finance, differentiation has consideration, Rakuten Mobile with about services think data understand individual all is with course, hotel data used to relationship, can an But the seems course, there have so Thank independent arm’s have talking the for Of shares. can make because can easier And to and and have bank, rigid length there be FinTech In and we we the financial other finance also you. especially to agencies great of the demographic But advantage trends. be Rakuten about IPO we’re not be similar overwhelming these so an

Operator

The from Please start [Indiscernible]. next is your question.

Unidentified Analyst

What then absolute about So about in cannot mentioned I the your you presentation, mobile termination, the profitability range improved. improvement? you question And of is Maybe to profitability mention have business. amount. two zero that the questions related and the first yen

with is mobile any question data And flow-out other cross the then second about among can outflow contribution the there other amount then to spending you inflow you and and be estimation? And would highest So and what referential the that first So about business is is talked is and businesses, question. flow-in the your the use, us? share users. that the,

mobile some business looking there a cross use you the probably contribution. the have negative at used businesses, to the I at looking So number, is other believe only but with

any please us you image if have to So share, let know.

Hiroshi Mikitani

could XX, page comparing year yen billion look before and after. made improvement the November at and profit was So from the XX XX to then you

one the able and pay had good back, but then pay about September that. cash have we monthly they at may happen expensive don’t and In Well, getting that it’s have a the the virtually, with so today. probably improvement they some to after October, charge, timing. churn and and see yen some November, in the to the will to back XXX for we But point profit be cost. So

now has but roaming, level. before is a we so, So and X use the roaming usage the reduced it this as to limitation they or a it roaming usage. was the become of that of then so, X% the it the the of gigabyte churn XX% X% And was ratio, data is there

rate. that portion the area, it eliminate also ASD this September eliminate a roaming space. portion. of In and want draw then gigabyte for usage my are we speed coverage will with all things attention And this the regardless one presentation, slow from churn is is we want to we And mega the is or this would that not launched mentioned and bps, there about will portion roaming and reason the limitation roaming like I even service area, the by the X beyond network down And be here. then data two is satellite of this by in rocket there goes that by to second reducing first reduce if churn as of So, X sufficient to roaming XX% with enough. a would like the it covering is of sky maybe reason the to the

But coverage even area. the the the that when point go the cannot to populated the geographical is factor. not that differentiation population another us. the this area, with this So view, of for into case about And XX%. area From comes can Rakuten is mountainous is cover they or launch. we big satellite XXX% the to But it Mobile,

Who then use is that So these basis, the it be And the battlefield the that are is portion can churn. of a reason. what went unlimited application big usage. XX%. to the reduce can will can can the data And two who then then that we and problems resolve. up we provide And

the So expand nationwide this we to want and more. cover to

was what second So question? your

Unidentified Analyst

Sorry.

mobile is business question other about to contribution second The businesses.

Hiroshi Mikitani

We to growing can actually I disclosed bases or we about high, not But in above the the X,XXX it’s yen reach outside quantifying that. are it’s level. largely ARPU the that so at future think

from new user portion of Ecosystem including to loyal and Mobile contribution they point users of allocate a from the become mobile is to they it’s ecosystem. how mobile Rakuten from Rakuten join you then the not the the them view and very are then will once we the XX% our ARPU big should profit decided but so business from yet, So and this profitability and

million So users very just the X,XXX yen Thank Ecosystem. you ecosystem, or has in a the so, with XX the points million not much. It to XX the we’ll Rakuten of have may XX the million XX for been the yen mobile with mobile the because the like XX to XX not points living lot for maybe be or users, that. users And actually services the users. can so just they so million use they they the or have free and cover the then be X,XXX

Operator

Thank you.

Next [Indiscernible], please.

Unidentified Analyst

EC, I about questions, but have doing two very well. domestic global are struggling companies EC you’re first

that disclose. Now but have that, please that? EC showed there example, a to too? for surrounding the any But I day Rakuten example, due share shopping is Mikitani willingness for And the delivery numbers be to for to think shopping answer same EC what I improvements with that might maybe you think difficult Travel, Mr. is efficiency if partly also his prospects logistics us and do is situation please the for you

Hiroshi Mikitani

Takeda?

Kazunori Takeda

of Takeda This in ecommerce. is speaking, I’m charge

that, your in Japanese, be have number because constraints, the that they of the about can well is governments first it online. is increasing the reservations during since is back ecommerce. to XXXX by online what effect. there people and also offline and making less a the period campaigns So also question we positive are had it to other its to words, level In about used Travel Yes, true COVID and shifted

out or businesses. increased related Rakuten Again, in when actually, think in that purchase quarter, now, result, strong. Rakuten have than the are ecommerce, and that is houses developed unit many might made the number convenience them going take all they really come in not for then and example, golf ecommerce fact it online they sluggish a that period, as their this used it and or is make people as And people play. COVID quite being Travel Ichiba go and as of but people hairstyles, playing And addition, customer positive. convenient, the purchases both that also beauty. popular has is that you so of these only as more Again, to in purchased for out they’re terms have wise so care might grown well result as of experienced golf are becoming leisure base, become they which during of this a before, quite of ecommerce second So into And is that, be a overall as steadily the of very actually in result. beauty well the out and as their like to people to norm merchandize and or and travel, proved go we the that becoming

are At different locations have the area just results Post for a and been have but as far, Osaka cover see of steps same Japan Kansai well shipment you in area logistics, of to as we entire of the a Japan so the points Japan. in increased offices and Post, result, different we taken time the what Kyushu. speak, area around venture post so land or that’s because we with not can have QX So them As Japan there as number warehouse joint the in are that

warehouses have built different We being in different regions.

closer, be can inventory that stored the So closer to physically the users. destinations

realized. delivery speed then the and warehouse outpost increase and mile one between this was So also and shipment And among is direct shipment the efficiency last final the step.

I delivery will gradually customers. So, going XX% not safe the to distribution we about steps words, two in period, these or be and but have that so, that taken there higher. to we of to all will at make share logistics that contribute will clear these towards specific so that all or steps ecommerce to other day the in end In that the goal. sure am period, will the three-year secure like realize we be talk would to

been by introduced the included the brand to let very taken of of little in think a one free food a high that now Fashion well. has has struggle that, And had many but site. a And is shipment bit, threshold various in major covered add become element [JORA] so I that terms course, Fashion is doing past threshold. used there impact. Rakuten and were XX% that and to measures Okay, with me so I or was there

see the What well used to high is appliances that to So adding out heat people segment, brand really protect to added Rakuten is cosmetics prevent you or on traveling are as to so has are chain are out. the heat for some supply and ourselves and or there goods that summer here. a is issue leading home against super and struggles or Tokyo to Fashion going carried Week but the the X.X a number be realized and that because that cosmetics hot included on of already in

well So that are as doing well. media. Rakuten as in Network Book is wholesale company well is positives okay packaged these and all of the

so, all are overall very doing And them are we quite doing And would therefore of well I say. fine.

Operator

It is almost time to close the first part.

please take start questions. let question. your [Indiscernible] two us more So

Unidentified Analyst

question. April And So them? or That expectation? first than reduced, about XXX,XXX, to XXX,XXX the higher lower expectation your from do you to about any is this than you is message your the churned XXX,XXX have users

Hiroshi Mikitani

actually they convert service the They left we so general so or them all. well, and end users are app So among use our didn’t of actually users, some no at them to users. to want usage paid

coming. left and Mobile So but are we is we churn the accepted a who certain and evolving Rakuten also the XG amount of

the Ecosystem edge So acquire we cutting are can Rakuten points among we And increased you and it. technology. using the

So looking my to I will Thank the Mobile. let people today. to much. consider a back feeling Rakuten the timing comprehensive picture you when That’s those at comes, and coming this in very

Operator

final And from [Indiscernible]. question

Unidentified Analyst

maybe churn zero-yen, is XX% so One just defecting segments questions. two question other have explained were stopping as churn segments than but there for plan, you earlier, I partially or or well. zero-yen those so as this after from like

XX targeting by those but And So million people what leaving want do little about reach What your you still are and about to elaborate you paying Can think? more do that who you you’re targets, you Rakuten? please? you a think do level? you think when mentioned subscribers,

Hiroshi Mikitani

reasons who are us have on. us leaving the already touched I left people Those or

the are that limit. are X there they beyond And who down. in will upper gigabyte network roaming go go people once areas, is the maybe So speed

people that’s might accelerated. And gone are up maybe to there reason and they should one be leaving therefore, carriers course, that to has out be churn different Rakuten, built Docomo, network KDDI. of the own these have speed for so Rakuten’s And that us

there And to are trying our before. or out expected segments, the now, order our decline were there the Of been for what carrier for are no XX% not those are of And build course, with But switching marketing, how from change customers, but marketing has the we’re coverage paying subscriber the people the area also who grow from of to in is another. them is XX% region as things course, specific is base. are coverage, realize they coverage we I actually in to network. population population think subscribers, of the to one there having keep in -- or with And further expansion strategies.

the new to million timing, exact targets or with for million therefore, It’s the XX for possible at the reach. earliest Rakuten Rakuten is speed like at schedule as Mobile on, compared think acquisition, announce faster that an and customer nearing well, Card timing our to will we’re So XX haven’t I planning Holders, acquisitions. what customer really we announced other would such XX much we million is that. But even right

you So please much Thank cannot forgive so me, I with share you. that

Operator

So Q&A this our session concludes for the media.

Hiroshi Mikitani

and Thank Rakuten you Group’s joining answer results. for on our quarter live XXXX, question financial session second

Hosaka, to Now the to investors on Hirose, the like people introduce would we Please allow Masayuki Kazunori questions from five analysts. Takeda, me stage. these entertain people. Kenji Mikitani, and Hiroshi

of aligned presentation from the audio. Q&A language for Please the Q&A And participants necessary, the investors we original do me Japanese you speaks, be shown interpreter Please corporate you simultaneous the find English interpreter’s not to the the will select with voice talk hand their about guarantee session page bottom speaker. in hear have to mute hear if a those and question. Japanese. you and original from the select proceed will PCB ask at be site. SD please and and will like presentation on translated lowered joining would how material the your materials the this let will this your overlaying been download into session, either The I When So, screen. audio volume [Indiscernible]

If you’re then to joining tap ask in a from tap raise your question. mobile and more order hand phone, please

before microphone is name un-muted please has make been asking called, your If your sure your question.

joining If you by Instructions]. [Operator phone, are

screen. and will also at the can and form We un-mute the that inquire bottom a by can you so queue ask of you you question, a

please have hand. you your any raise if So question

Group and please ask Citi Tsuruo question. un-mute from Okay, yourself your

Mitsunobu Tsuruo

question. Thank giving ask an a me for to you opportunity much very

one first profitability a outlook. improvement The is mobile future

looking make to billion billion in improvement at changing chart around So, fact in XX your will XX towards contribution your be the and XXX the today And billion is ARPU first question. what a the so, loss specifically yen And that this be would will XX% chart, QX cost, the become the yen, improvement, so yen of would what your idea be that? how happen? it roaming the

question about Second is situation. flow the free cash

XXX so, yen, billion So a two non-financial in how about to what in your the QX, be cash you option had see will that resolve areas These are funding the option? big you free flow future very negative questions. do the

Hiroshi Mikitani

the outside do therefore. as not number, So, specific for number disclose we the specific

yen we is about disclose or billion anything I ARPU on don’t because which So, cannot improvement. as information so, chart XXX the mention shown

after So, be improving that because November of having after and zero happen will that that. end user would then and

been even today increasing. However, usage has data volume

the I plus spoke so to media as the running XX% subscribers, of acquisition end the profitability had plus we have the and user improvement end from user another to zero is zero natural launched about comparing some previously, and some the see since increase we in XX% year a we So, the that beginning profitability and and X before factored QX. heavy this users and cost UN-LIMIT contribution excluding

roaming the using factor. think another that percentage usage So, today roaming the cash not reflected free X% and to big it that action -- about reducing for is but that, [indiscernible] QX, to is X% KDDI the And X%. I But have is other. the ask gradually are everything been X%, the roaming flow, into we we that is

Unidentified Company Representative

the for free as flow outlook. Speaking cash

become positive. cash of business far including was is CapEx the the the cost EBITDA that. profit And the already aiming so is the happen end which is single what then And So, be they Rakuten in The overall built is other would at year must before not Mobile funded. and depreciation and that communicated of in the course so or before other future. month we a and XX businesses the are mobile will timing profit flow needed

the from there no the burden. big of view, is point financial So

we other other much. On so will the positions bank me. you through as financial know, on all other been done Thank IPO hand, very the you working for the That’s be that. have improvement a

Operator

Thank you.

Nagao Bank of Next securities, America please. Yoshitaka,

Nagao Yoshitaka

have two well. as questions I

First the question, ecommerce GMS. domestic

For you didn’t on or the the was that that is but elaborate it that it talk about to increasing a you a a ARPU, but program certain think that can quite example, enhanced is price is more I frequency. is steady it specific? be or can is to leading you it extent, unit frequency

competitors other strengthening think well. are their programs I actually as

area standalone, this not? be think basis. has there changed in or But prospects your I black change past, I or be not? That’s a or latter following. were profitability second you So you were on that details question in there schedule And any It’s impact of to income will the of trying this a is my appreciated. a mobile, in time. the sort in been the question. any operating My That monthly in XXXX, the also think, second the on timeline, half strategy about basis, therefore,

Hiroshi Mikitani

question, so the Okay, answer please. first Takeda should

Kazunori Takeda

charge in Takeda of Yes, commerce, ecommerce.

So you’re asking details. more for

usage, many have frequency, us. just sure and users, improved but ecosystem. loyal such increasing to subscribers, cross other are at about during for Ichiba is in And for as through people for but about this center, or well, we the registered I other as regular users of to campaigns talked with services the there within share very and regarding sale And are more well. They higher cross time the such So talked the trends And users every cross And on users are have various of and wallet accounts, recognition and And call promote such In pandemic, mobile a we’re not basis, well. see increasing increased campaigns usage for increasing other the use. a diamond we we cross what course, purchase or been others, words, for new became registered on are result, the these already, but people. COVID them, are increase. running as as there. each among users also frequency diamond campaigns And especially the there’s use of and campaigns. such we super marathon these this the

frequency increasing. well purchase talked total each is increase per amount increasing. has increasing number the is the that, or talked the areas been about the or about where we overall, witnessed different the genre per is transaction So of And users as for of segments segments the

up announced. have small we to increase, has added you. it a major be So however, each increase that Thank might

Hiroshi Mikitani

I about I appendix XX And XX.X% add, that shown if is may on Page there. of the mobile the talks is number

the users new are much. not be basis, customers, that So actually purchase increasing on these a price maybe regular unit purchasing might or

are who However, still is overall, more it there purchase people increasing. and everything Rakuten. more in online And

impactful cross regard. in this really so And is use

is big, Point contribution mobile, for Rakuten think. And standalone I really So profitability.

for that strategies turning into black the course, we Of course, we of have can and there our that are track things disclose disclose things we cannot yet.

course, we of disclose will the So sometime disclose. future, we can in what

increased are have trying that is for data that will the ARPU usage realize, increased. the been doing. be we being of are so we And ARPU, what these so some And things other to it’s of customers of overall a interest also inquiries. I contribution think a not level the lot so enterprise lot there’s carriers, customers, high. And In by and maybe enterprise are there

they is and for of of enterprise course so this cost when can over strong, they contracts a the and customers However, us, for have low really carrier a overnight. point think is there’s our lot interest, switch I attractive ongoing potential

that to customers we one-fourth that will customers when decide have Rakuten actually XXX,XXX than more with they them of potential, about meet However, and Rakuten. we the of switch

to by carriers. do were those contract, marketing But on kind running large. or the practiced companies of customers not our is enterprise focusing going able was our sales So They corporate or activities, I other quite not to we other are who enterprise that. think to really be condensed market and

we activities So as this Thank come carry to stage we where can you. with sales finally, have out the enterprise such customers.

Operator

Okay, then next [Indiscernible]. is HSBC from

Unidentified Analyst

guys. questions, on both mobile. please, afternoon Two Good

to data the that has to the costs, KDDI increase relates costs understand payable in previously, costs. traffic roaming one that declining. increased first The traffic mentioned But you’ve I

values sounds peers. you’re higher is for it than data your though now as aiming higher as So usage already

It’s you relates So that? And about expect can you the any give us second evolve? XG. how to on guidance one that to

you more you XG is? coverage like you quickly to able Are that expect the your to to the Now, you. I any give as assume would by users detail efficient. it’s as of year? it move to as end many possible, Thank what XG as on possible current And where be

Unidentified Company Representative

now, difficult is to remaining as of rural traffic the the little that now. still, right, the and But Miki fixed area total of penetration, forward reduce a a So about as current But well. that, as of total inside the of still urban record traffic because area, percentage, possible. our KDDI. bit a is rolling the mentioned like But building target area also is right some But penetration, is in our not only total almost part is going antenna building X%. ;ole rural are discussion the in is the construction, our right much course, decision forecast can we KDDI of as aggressive is

okay. near little to a to future. difficult right reduce now. possible as is, is we say in So as It question much the But bit like want

Unidentified Company Representative

We think I we anyhow, about pay And down. the have much dramatically details time, too the going same bilateral usage I at have going going is down to it’s is of think with cover growing. do cost [Indiscernible] But it to some fixed cannot But we coverage we regard obviously, of disclose number, any not agreement. With data to down dramatically. But it’s KDDI. KDDI. kind significantly. agreement

we that to that’s coming [Indiscernible]. significant understand And please build down much a I amount. an With So giving XG, how you to it’s regard then we KDDI, have tell But think. dramatically. cannot we’re

Unidentified Analyst

Yes.

Unidentified Company Representative

of it to do we’re basically. we the any this even carriers important satellites XG. that talking we benefit bandwidth of please only gone But about will XG be in a to of for stations the you very western XG have because when not is this is that And convert then Tokyo, this we with XG relay down is kind XG. the powered restriction for XXXX. much that of is they really like with think there companies. one video part we station the other in most talk and is is bigger issue careful sessions. call active There Japan especially about What type XG true but of the and mobile, gone satellite the interference very, is two And also gain is traffic what low to a base be an XG band and be in not have broadcasting offload

to the And do of that planning where XG we’re we we think we is carriers traffic want but traffic after that than the have I coverage. are XG so more significant is not have to I XX% this XG. yet. So going why no XG going -- it’s wise, then that, be and carefully the massive with forth, to smartly There think

Kazunori Takeda

I efficiency. would add, elaborate just telling about

a other. to is the not XG to For one customers is us from it obstacle whether or really move large XG it’s technology

gives virtualization think and fast a of talked effort. XG I nature is the to significant we’ve about very this not our the ability unparalleled also track the of this before efficiency infrastructure really really deployment of

and XG But selected power realize still as deploy sub six. have MIMO operate to massive at we’ve for efficiency spectrum mind as standard that said, Tokyo full in Miki that of ARPU that’s deliberately megahertz max we in need having to technology significant a in keep this benefit. to XXX itself, we So,

So really I deliver progressing think the we our plan satellite to area true is XG this capability for earth performance max on Tokyo specifically. restriction interference but to well, from need in remove

Unidentified Company Representative

of But that’s a matter time. just

Operator

Kazahaya, In please. Suisse the Credit of will the be interest time, Kazahaya, question Okay. final next

Takahiro Kazahaya

Thank Kazahaya the of about synergy in question part of of just you. interest media you I the ask effects from mobile time, ecosystem In the to Suisse. will is Mr. Credit interest the to me. Q&A. In Mikitani. one Mobile Rakuten of the

you X,XXX said approximately the ARPU is gave. yen You number

it like or many annual be more is on would synergistic what about Now, if gross then per that. the with profit can number, that draw if that and this. expectation you an X,XXX yen hear to you the effect the and have is XXX yen have I’d on so XX,XXX profit from you based be it person yen, might ARPU let’s X or that say X,XXX there customers, million is billion basis the

Hiroshi Mikitani

to maybe contribution be one would that by by parts two ostensive rather is yen more the person, multiplying X,XXX purchase is one are then X,XXX There That that ratio and one Rakuten and on the surface. XX%. Ichiba,

So be XXX a that would yen.

So that’s profit? is profit. into a No, translates But yen to of it XXX% not be thinking. going total XXX that it’s one way

you the question. what’s ratio is that apply So the

are to to going is means on, XX,XXX. increase to XX,XXX up going need or about profit on surface what it, but what the rather much contribution gross So capture, not XX% it yen we’re is contribution, is operating income basing by we X,XXX how

travel of of card course these So, all XXX. included

should what on the we of focus in focusing that if this we’re be you So what increase ways thing, really it marginal on. we profit. of now, target the one a I on is have different just think them over is but think for how you add that then gross together, get all tax profit aside about you there course, a X,XXX that can have will But setting to addition profit are much will level, And before course,

was clear that the aware we there are video are in others not there the so situations shopping past using of were that competitive Amazon Of live past. are or doing Amazon and course, things that in not different emerge

another of So the with course opportunities or we advertisements the also distribution is area. and can for agreement, make how GMS to contribution

to So as XX Mobile billion billion yen Rakuten what get high, an to it’s therefore, a loyalty high. might And very XX%, maybe yen very, Ichiba, users, level is unbelievably XX increased increase Rakuten is the okay. result, of you if then by

think standalone and the to that about alone unique in on to you entire basis make that a the Rakuten profits but you attention, strength draw Group. mobile can have you a think So, tends is of ecosystem

briefing session more Thank very hope beyond. in So, or I next the us you give will detailed you much. explanation

Unidentified Company Representative

have in price one try September Yes. information. include From but was next one that time will SPU. SPA, course, Low piece it to on, or October I move we will is of

to point that up mobile be super be but campaign, included. outside used So, of it will

subject from SPU SPU benefited super the card, And mobile is up point the and they once bank, group. it law so, the to security that join

a joining be will inflow there as mobile of SPU. think result that I So,

Takahiro Kazahaya

Thank you developments. the look to I very future much forward

very you thank So, much.

Operator

the investors you we the now, analysts. in Q&A much. Thank will So, finish like the very to session for

a to like make have closing will We comment. [Indiscernible]

Unidentified Company Representative

very to stock be price Rakuten low. honest, So, well the is valued

So is there that undervalued. are two factor

Rakuten the is one First deliver. Mobile to

investors is so reason is to profitable this and want and Mobile concern I confidence. therefore, business that to businesses So get a the them great Rakuten one grow

So like we to the the to will of related this information business. enrich disclosure

our the like double symphony, world interested the mobile will may what you they and mobile. successful do is AWS, Rakuten different And have and Rakuten in Mobile understand others, carriers the that great to then several virtualized and our we basically, what is what The like subscription these and be deal other one please that’s to itself it technology, technology two a technology On and mega the Rakuten the why differentiate this with come wheel And and wheels are Mobile. you Rakuten. [Indiscernible] the I to are the Amazon, want is just from hand, over would is then is understand very And will -- what billion XXX run. yen. ecommerce in to

also companies a have have not including U.S. X itself the and failure because all sometimes like have and the the then other technology because because criticize why achieved the test Guinness and it our technology this this milli business our operator is a just and they technology technology may not is speed to the established the and attention model on and it develop and companies, this made. do business, this technology then record So, we and sec disrupt they people are world, the when failure them do that complete other drive but sell basic and result went operators improve why, their test paying one to large drive Rakuten to by latency the over only they Mobile run any then

plus for a this. business, us is XX% great they YoY near a haven’t the business even to which cannot is XX% achieved, possible technology And if carry difference. we for reach future. what reach around the XX%, So still it’s the in today, make advertisement mentioned fact covered XX% have we is have at and should that I if as our it this we And looking will what growing contract,

entire arbitrage. the ecosystem, So the is source

So where question. Is source? the do a we generate

is yen biggest million advertisement to then develop define up the you grow have but can XXX want it’s is to thing, you and and want data, That to purchase? do easy yen utilizing like advertisement. or of So XXX revenue appropriate we billion what find And billion to thing we XXX to the to it one XXX possible. yen

OTO must strategy need So mobile. so encoding end in with say order to you do the super be developed the and

we is but is remarkable power, some in a external the results. we have matter XX our million end-to-end is than business station surplus, then what this the ecosystem we this important. maybe really it’s to subscribers, past revenue that what years, can subscribers important. a very using half The At subscribers of math the XX in this you coverage and base quite And have profit? go environmental say it’s reach we time establish please X make the million in believe much important do that or can have to how profit into that then is can we you we think we important can spreadsheet. or this So generate the point million the two the however, can million XX and I factors but can is time, less we it, how if

have So we cost structure, it a will if good win.

why think the So why I accounts have to million and profit. factor the win? XX Rakuten Card million Mobile the XX Bank Rakuten Rakuten same the now applies

the So Rakuten profit the more existing than will mobile be these, Rakuten and profound. I is the businesses as generating entire mentioned the before, to contribution Ecosystem

a Rakuten how we Rakuten list this Bank of among understanding our we the the capital. and the going so businesses investors heavy they so are to promote having and context, to in surface can are are we going So bank Rakuten, and discounted, the the we that much

the profit we we dilution, big. if the can have big company. double then the specific also And contribution dilution we the profit, will and So parent That’s see. from we is possible contribution can above and capital become then have there how a to XX% gain can

comprehensive for attendance. Rakuten This companies briefing net-net, much manner. very of business XXXX Thank financial concludes QX Group in look results I very Thank at you session. the you the like So, will much. a your

Hiroshi Mikitani	Chairman, President and CEO
Kazunori Takeda	Group EVP, President of Commerce Company
Mitsunobu Tsuruo	Citigroup
Yoshitaka Nagao	Nomura Securities
Kazunori Takeda	Credit Suisse

Rakuten (RKUNY) 11 Aug 222022 Q2 Earnings call transcript