The following is a summary of the Rakuten Group, Inc. (RKUNY) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Rakuten Group reported a record high consolidated revenue of JPY566.7 billion, marking a 9.3% increase year-over-year.

• Non-GAAP operating income saw a substantial improvement to JPY53.4 billion.

• Consolidated EBITDA climbed significantly by 159.1% to JPY92.2 billion.

Business Progress:

• Rakuten Mobile has achieved a milestone of 8.12 million subscribers, with steady growth in its ecosystem contributing notably to other group services.

• Rakuten has formed a strategic capital and business alliance with Mizuho Financial Group, aiming for integrated performance and mutual benefits.

• Implementation of AI, particularly in customer support, has drastically reduced costs by 31%, demonstrating operational efficiency gains.

Opportunities:

• Continued expansion of Rakuten Mobile, leveraging its cost advantages and integration within the Rakuten ecosystem is expected to drive further growth.

• Strategic collaborations like the one with Mizuho Financial Group and advancements in network technologies position Rakuten for competitive advantages in both financial and telecommunications sectors.

Risks:

• The dependency on Rakuten Mobile's growth and its ecosystem for overall profitability puts a considerable performance pressure on this segment.

• Market volatility, particularly influenced by external economic factors like the situation in Ukraine, presents ongoing risks to the international business segment.

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