May 13, 2021

True Web World

Here you will find the truth!

Rakuten in the red in 2019 after still difficult 4th quarter

The group nippon-commerce and online services in Rakuten fell into the red in 2019, the year in which it suffered from costs linked to its mobile telephone business in Japan and losses on financial participations. Its net result was displayed for the entire fiscal year calendar past to -31,9 billion yen (-267 million euro), compared to net income of 142.3 billion yen in 2018, according to a press release.

Its operating profit annual has shrunk by 57% year on year, to 72.7 billion yen, even though its turnover has increased by 14.7% to 1.263,9 billion yen (10.6 billion euros). The group has seen an increase in its revenue related to its core business of gallery market both in Japan and abroad and welcomes a total of 19 million holders of bank cards issued by its services. However, it must make huge expenditures to build its own mobile network in Japan, and strengthen its infrastructure of online commerce.

He prepares for the actual launch of its tender cell (instead of leasing capacity of the network to other operators), but this strategy to become the real 4th player in the japanese sector has been delayed. Rakuten was already in the red on the first 9 months of the year, sealed, in particular by an exceptional charge arising from the fall in stock Exchange platform VTC Lyft, of which he is a shareholder. The trend was not reversed at year-end. Between October and December, despite a record turnover for the 4th quarter, the group accused over this period to an operating loss of 40.2 billion yen, against a profit of 36.9 billion yen a year earlier, because of the required investment and accounting losses on investments.

The side of online commerce, it is preparing a new offensive in march. The group intends to tackle Amazon in lowering or even providing the delivery costs charged by the merchants present on its platform, but the competition authorities don’t hear it of this ear and its premises have recently been raided. Rest that the boss provides to act for the good of the consumer. “The prices of products displayed are less expensive than the competition, but the total cost to the customer is more expensive when you add shipping costs”, leading to many critics, has justified Rakuten in a presentation.