Rakuten Posts 447.5 Million Euro Loss With 19th Quarterly Deficit Despite 80% Operating Profit Growth

Rakuten Group reported its 19th consecutive quarterly loss, driven primarily by financial challenges in its mobile business. Despite this, the company showed strong operational performance in other areas, with operating profit increasing by over 80% year-over-year and revenue growing 27%, particularly in its software and cloud units where operating profit rose nearly 90% year-over-year, exceeding 10 billion yen. However, the firm recorded a net loss of 447.5 million euros in the first quarter, a 73.3% increase compared to the previous period. Following the earnings report, Rakuten's shares declined sharply amid investor concerns over the ongoing losses and the financial impact of its struggling mobile segment.