RKUNF - Rakuten Group Inc. (RKUNY) Q4 2023 Earnings Call Transcript

2024-02-14 20:29:05 ET

Rakuten Group, Inc. (RKUNY)

Q4 2023 Earnings Conference Call

February 14, 2024 01:15 AM ET

Company Participants

Hiroshi Mikitani - Chairman, President & Chief Executive Officer

Kenji Hirose - Chief Financial Officer

Ting Cai - Group Senior Managing Executive Officer, Chief Data Officer, Group Senior Managing Executive

Conference Call Participants

Utai Hatani - News Picks

Takahiro Kazahaya - UBS Securities

Neale Anderson - HSBC Securities

Oliver Matthew - CLSA Securities

Yoshitaka Nagao - BofA Securities

Presentation

Operator

Thank you very much for joining us today. Now, I would like to start Rakuten's Group 2023 Full Year and Fourth Quarter Financial Results Meeting. We have disclosed the latest consolidated financial report at 3:00 PM today. You can view this data on our corporate website page for investors. And in terms of audio and video, if it’s interrupted, please in the bottom there is a button where you will be able to utilize other streaming service.

So now without further ado, we'd like to invite Mr. Mikitani.

Hiroshi Mikitani

Hello, everyone. And despite your busy very schedule, thank you for joining us for the FY 2023 fourth quarter and full year consolidated financial results meeting. Thank you very much for your kind participation.

So first of all at the outset to the victims of the 2024 Noto Peninsula earthquake those who have been victimized and the family members, we would like to extend our heartfelt sympathy and support to all of you.

So without further ado, 2023 full year and the fourth quarter financial results, we'd like to offer you the summary. So first of all in terms of consolidated operating results. The sales and revenue is as you can see, the fourth quarter is 3.3% positive. And there has been a lot of optimization that has been conducted in various means and consolidated non-GAAP EBITDA is JPY74.5 billion positive. So it's increased extensively significantly for EBITDA base, and in each of the business as you can see on this matrix, so internet services segment consolidated 5.9% increase and FinTech is 10.4% increase and Rakuten Mobile 12.6%.

But with that being said, Rakuten Symphony, a large of course significant deal has been conducted. So there are some deviation in terms of the reflected on the ledger books in the month. So non-GAAP internet services segment is 33.9% and also FinTech, 34.7% and Mobile is minus 71.2%. So that has been the result. So as a result of that, the non-GAAP operating profit, the fourth quarter minus JPY3.6 billion. So year-on-year on the same quarter, it has been an improvement by JPY69 billion.

So in terms of the IFRS, operating profit this is JPY54.5 billion positive, so JPY55.4 billion. So non-GAAP EBITDA is JPY74.5 billion, and has been improvement by JPY74.5 billion. So there is a significant improvement that has been made that we had been able to deliver.

And in terms of the consolidated revenue as you can see here. So since the establishment 27 consecutive month, we have been able to turn positive. So JPY2.07 trillion, we have been able to achieve....

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