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Investing.com -- Rakuten, the Japanese e-commerce giant, announced its Q1 results, revealing a sales figure of ¥562.7 billion. This represents a 9.6% increase from the same period last year, even though it fell slightly short of the consensus estimate of ¥565.7 billion.
The operating profit (OP) for the quarter was reported at -¥15.4 billion, a significant deviation from the consensus estimate of -¥1.2 billion. However, the Non-GAAP EBITDA stood at ¥79.9 billion, marking a 51.4% YoY increase, albeit lower than the consensus estimate of ¥87.8 billion.
The company’s mobile segment, in particular, showed promising signs. The Q1 sales for this segment were ¥110.7 billion, up 10.9% YoY. The Non-GAAP operating profit (OP) was -¥51.3 billion, while the Non-GAAP EBITDA shrank to -¥6.5 billion. Despite these figures, the segment generated a quarterly profit in terms of EBITDA for the first time, excluding property tax.
Analysts at Jefferies commented on Rakuten’s results, expressing a slightly positive outlook. They commended the company’s use and adaptation of artificial intelligence (AI), suggesting that Rakuten is leading the market in this area.
As for the Mobile Key Performance Indicators, the analysts found no major surprises. They noted that Internet Services are exhibiting steady trends, but expressed a desire to see growth acceleration in this segment.
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