Rakuten H1 results: revenue up 14.5%

Date : 13 August 2019

Rakuten has published its results for the six months ending June 30, with Group revenue up 14.5% to JPY586,644m (US$5.6bn) year-on-year.

Internet Services revenue up 16.1%

Revenue from Internet Services, Rakuten’s core business including ecommerce and travel booking services, increased 16.1% to JPY359,156m (US$3.4bn) yoy. Segment profit increased by 94.3% to JPY108,867m (US$1bn) yoy.

Initiatives to drive further growth

Rakuten has outlined several key focus areas to drive further growth:

  • Expand logistics network to provide a stable platform to its merchants
  • Expansion of last mile delivery: Rakuten Super Logistics now covers Chiba (Narashino) and Kanagawa (Chuorinkan). It plans to expand Rakuten Express’ population coverage to 60% of Japan by end of December 2019. It is establishing partnerships to expand Express and drive efficiencies, e.g. share depots with Tokyu group
  • To implement a unified free shipping threshold to boost customer purchases and new users, e.g. free shipping on orders JPY3,980 (US$38) or more. Rakuten states that approx. 70% of customers decided not to purchase due to shipping related reasons and therefore an easy to understand pricing structure should help reduce concerns

 

Rakuten’s investment business portfolio

Source: Rakuten