Rakuten: Mobile Losses Weigh On The Outlook

Nov. 27, 2022 2:37 AM ETRakuten Group, Inc. (RKUNF), RKUNY
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Summary

  • Rakuten’s results remain under pressure from losses in its mobile unit.
  • There have been positive signs post-Q3, and management is optimistic, but it may be too early to underwrite a mobile turnaround.
  • The Mizuho deal should help ease any funding concerns for now, but given the prospect of more mobile losses ahead, I remain sidelined.

Rakuten headquarters located in Silicon Valley

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Rakuten (OTCPK:RKUNY) continues to perform everywhere but mobile, where aggressive investments are underway to build out the network across Japan. As a result, EBITDA profitability remains elusive, as high operating costs, including from roaming payments, weigh on the margins. Per my

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E-Commerce Q3 Highlights

Rakuten

Mobile Subs Growth

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Mobile ARPU Growth

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Funding Options

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This article was written by

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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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