The less bumpy way to ride e-commerce = Rakuten (Seite 132)

[FlankerStan]

KKR Increases Majority Stake in Seiyu with Acquisition of Rakuten Shares

・KKR increases its majority stake in the local innovative value retailer of choice to 85%
・Rakuten and Seiyu to continue leveraging retail expertise across online grocery delivery, cashless payments and data-driven marketing

TOKYO – May 12, 2023 – KKR, a leading global investment firm, and Rakuten Group, Inc., (“Rakuten”) today announced the signing of definitive agreements under which a fund managed by KKR will purchase Rakuten’s stake in Seiyu (the “Company”), a leading, nationwide supermarket chain in Japan. With this purchase, KKR increases its stake in Seiyu from 65% to 85%. *1

KKR and Rakuten, together with Seiyu’s third shareholder, Walmart, have collaborated to support Seiyu’s growth since KKR and Rakuten completed their investments in the Company in 2021. Support initiatives have included: improving product quality, user experiences, and store operations, and renovating and refurbishing stores, which have enabled Seiyu to deliver greater value and convenience. Customers have benefited from a range of initiatives, such as:

・The convenience of cashless payment methods in Seiyu stores, including Rakuten Pay and Rakuten Edy, as well as Japan’s leading membership loyalty program, Rakuten Points.*2
・Improved quality and selection of products, especially for fresh produce and delicatessen
・Optimized and improved store operations and processes as a result of leveraging KKR’s operational expertise; and
・Enhanced online-merges-with-offline (OMO*3) initiatives as a result of strategic collaboration amongst Seiyu’s shareholders

Following this transaction, Rakuten will continue to be an important strategic partner to Seiyu and will work closely with the Company’s management and shareholders to further strengthen Seiyu’s offering to customers, prioritizing value and convenience.

Hiro Hirano, Co-Head of Private Equity for KKR Asia Pacific and CEO of KKR Japan, said, “We are pleased to deepen our relationship with Seiyu, an iconic Japanese brand in which we continue to see strong promise. We look forward to unlocking the company’s full potential through the continued strategic partnership with Rakuten and Walmart, which brings together our respective expertise in investing behind a company’s growth, global best-in-class practices, and thoughtful customer experience. Together, we remain focused on helping Seiyu continue to deliver greater value and convenience to its customers across Japan and maintain its strong growth.”

Tsuneo Okubo, President and Representative Director of Seiyu Holdings Co. and Seiyu Co., Ltd., said, “Seiyu aims to become Japan’s No. 1 supermarket and online supermarket by 2025, in line with our medium-term management plan, building on the new management structure introduced in 2021. Seiyu is focused on building a virtuous cycle of investment in our human capital, information systems, and stores, with greater profits and value generated through better quality products and strengthened sales capability. While maintaining our philosophy of “Every Day Low Price,” we strive to provide services and products that increase customer satisfaction through improved freshness and quality. We are pleased that our operating income in FY22 saw a 50% year-on-year growth, which is evidence that our business transformation program is progressing well. Through our ongoing strategic partnership with Rakuten, we will continue to strengthen our digital marketing and aim to become the leading OMO retailer in Japan."

Kazunori Takeda, Director and Group Executive Vice President and President of Commerce & Marketing Company, Rakuten Group, Inc., said, “With the strong support and retail expertise of KKR, our collaboration with Seiyu has been extremely fruitful, with strong growth in the popular Rakuten Seiyu Netsuper online grocery delivery service, introduction of Rakuten cashless payment options and strengthening customer acquisition programs and product promotions by utilizing Rakuten Points. We will continue working together to deliver greater levels of convenience to our customers.”

KKR is making its investment from its Asian Fund IV. Further details of the investment have not been disclosed.

https://global.rakuten.com/corp/news/press/2023/0512_05.html

[FlankerStan]

Results are okay

Rakuten Group Q1 FY2023 Financial Results Highlights

Overall Performance

・The Rakuten Group recorded revenue growth in all three segments in Q1 FY2023: Internet Services, FinTech and Mobile. Consolidated revenue was 475.6 billion yen, an increase of 9.3% year-on-year (YoY), marking the highest revenue ever recorded by the Rakuten Group in the first quarter of a fiscal year.

・The average number of monthly active users across the Rakuten Group in Japan surpassed 40 million*1, up 10.3% YoY, in Q1 FY2023. The Rakuten Ecosystem customer base continues to expand, with the percentage of all users using two or more services over the past 12 months steadily increasing to 76.1%.

・Advertising business revenue grew significantly to 48.3 billion yen, achieving double-digit growth of 15.8% YoY in Q1 FY2023*2. The business aims for 200 billion yen in revenue for FY2023.

・Due to ongoing strategic investment in future growth for the Mobile segment, including the installation of Rakuten Mobile's own base stations, the Rakuten Group recorded Non-GAAP operating losses of 69.0 billion yen in Q1 FY2023. Following on from the previous quarter, Rakuten Group’s consolidated EBITDA was again profitable, achieving 7.4 billion yen, an increase of 42.9 billion yen YoY. The Rakuten Group expects to be EBITDA positive on a consolidated basis for FY2023.

Internet Services segment

・Revenue for the Internet Services segment was 271.1 billion yen, up 8.7% YoY, in Q1 FY2023. In this segment, domestic e-commerce*3 gross merchandise sales (GMS) reached more than 1.4 trillion yen this quarter, achieving double-digit growth of 12.2%.

・Revenue for domestic e-commerce was 205.0 billion yen in Q1 FY2023, achieving double-digit revenue growth of 12.1% YoY. Notably, Rakuten Ichiba is also achieving significant continued growth post-pandemic, with the number of purchasers increasing 29.1% and purchase prices increasing 16.6% this quarter, in comparison to pre-pandemic Q1 FY2020. Rakuten Travel is also experiencing strong growth due to the partial easing of pandemic-related restrictions.

・U.S.-based e-commerce business Rakuten Rewards recorded revenue of 186 million USD, up 1.4% YoY, on GMS of 2.6 billion USD, up 5.5% YoY. Additionally, the total number of Rakuten TV users increased by 44.8% YoY and the total number of registered Rakuten Viki users increased by 25.7% YoY, reflecting steady growth in Rakuten's overseas businesses.

FinTech segment

・The FinTech segment delivered growth in both revenue and profit for Q1 FY2023, with revenue of 168.0 billion yen, up 7.6% YoY, and Non-GAAP operating income of 26.6 billion yen, up 20.4% YoY.

・The number of credit cards issued by Rakuten Card reached 28.63 million as of the end of March 2023, up 10.2% YoY, and shopping GTV for Q1 FY2023 jumped to 4.9 trillion yen, growth of 22.2% YoY. Rakuten Card continues to make steady progress towards achieving its “Triple Three” mid-term goals of 30 million cards issued, 30 trillion yen in shopping GTV and 30% GTV market share.

・Rakuten Bank made its initial public offering on the Tokyo Stock Exchange Prime Market on April 21, 2023, with a market value of 322.2 billion yen as of May 11*4. As of the end of March 2023, Rakuten Bank reached 13.74 million individual customer accounts, up 11.6% YoY, and its total balance of deposits (non-consolidated) grew to 9.13 trillion yen, up 17.6% YoY. In addition, Rakuten Securities has more than 9 million general securities accounts as of May 12, 2023, also demonstrating steady growth in their customer base.

Mobile segment

・In Q1 FY2023, the Mobile segment recorded revenue of 96.3 billion yen, a significant increase of 25.7% YoY. Non-GAAP operating losses of 102.7 billion yen were recorded. After peaking in Q1 FY2022, operating losses continue to contract due to ARPU (average revenue per user) growth as subscribers transitioned to the current Rakuten UN-LIMIT VII service plan, reduced roaming costs as the Rakuten network coverage area has expanded and other factors.

・The total number of MNO subscriptions*5 (both individual and business) was 4.65 million as of May 10, 2023 (preliminary figures). Churn continues to decrease, and new MNO subscribers have shown a net increase since December 2022. MNO ARPU (individual) in Q1 FY2023 increased to 1,959 yen from 836 yen in Q1 FY2022*6.

・Rakuten Mobile and KDDI concluded a new roaming agreement*7. This allows Rakuten Mobile to improve network connectivity rapidly and efficiently, while at the same time limiting its financial burden, as the company aims to further increase subscriber numbers with the launch of its new plan in June 2023*8.

・Driven by continued growth with anchor customers, Rakuten Symphony revenue increased to 76 million USD in Q1 FY2023, up 14.6% YoY.

*1 Number of active users in March 2023. Figures are for Rakuten members who earned at least 1 Rakuten Point in the relevant month.
*2 Total sum of advertising sales in Japan recorded in each segment (Internet Services, FinTech and Mobile). Includes internal Group transactions.
*3 Domestic e-commerce GMS = Rakuten Ichiba, Rakuten Travel (GTV on checkout basis), Rakuten Books, Rakuten Books Network, Rakuten Kobo (domestic), golf business, Rakuten Fashion, Rakuten Dream businesses, Rakuten Beauty, Rakuten 24 and other first-party daily necessities shops, Rakuten Car, Rakuten Rakuma, Rakuten Rebates, Rakuten Seiyu Netsuper, Rakuten Ticket, cross border trading, etc. Excludes some tax-exempt businesses and includes consumption tax.
*4 Calculated based on the closing share price of 1,960 yen on May 11, 2023.
*5 Definition revised as of Q1 2023. Past figures have also been adjusted to align with the newly revised definition.
*6 Sales of each service divided by the average of the number of subscribers at the end of the most recent quarter and the number of subscribers at the end of the previous quarter. Q1 FY2023 are preliminary figures. Definition of subscriptions revised as of Q1 2023. Past figures have also been adjusted to align with the newly revised definition.
*7 KDDI and Rakuten Mobile Reach New Roaming Agreement
https://corp.mobile.rakuten.co.jp/english/news/press/2023/05…
*8 Rakuten Mobile Announces New "Rakuten SAIKYO Plan" with Unlimited High-speed Data Usage in Network Areas Nationwide

https://global.rakuten.com/corp/news/press/2023/0512_04.html

[FlankerStan]

Rakuten is the biggest owner of Rakuten

Inditex to Deliver its Online Orders through Cabify

Antonio Rentero, March 14, 2023, 10:34 am

Mobility platform Cabify will be in charge of the delivery of orders placed through the online stores of Inditex’s different brands.

Textile giant Inditex has reached an agreement with mobility platform Cabify to handle the delivery of online orders for its different brands in Spain. This partnership is presented as an opportunity for both companies, as it will allow them to strengthen their presence in the market and offer a faster and more efficient service to their customers.

Inditex, the owner of well-known brands such as Zara, Massimo Dutti, and Pull & Bear, has experienced significant growth in its online business in recent years. In this sense, the company has highlighted the importance of having a reliable logistics partner to ensure the speed and quality of the delivery service.
Cabify is a mobility platform that operates in several cities in Spain and other countries around the world. Through its app, users can request different types of vehicles to move from one place to another and also place orders for food and other products through its home delivery service.

The agreement between Inditex and Cabify consists of the mobility platform being responsible for the delivery of orders placed through the online stores of the different Inditex brands. To do so, Cabify will use its network of drivers and vehicles, as well as its technology and experience in the logistics field.

https://www.silicon.eu/inditex-to-deliver-its-online-orders-…

[FlankerStan]

Rakuten uses real-time data platform for targeted advertising

Rakuten uses real-time data platform for targeted advertising - Using Aerospike as core database

By Kumar Gandharv on May 11, 2023 9:37AM

Rakuten, one of Japan’s leading eCommerce players, has leveraged Aerospike for personalised advertisements targeted at Japanese shoppers.

Headquartered in Tokyo, Rakuten earns a major chunk of its revenue from advertising, and the team in charge of ad delivery is based at its Singapore office.

As the number of internet-based users increases, the workload on the machine-learning recommendation engine multiplies to deliver targeted ads for each user, Xia said.

He added that with the Aerospike database, a large volume of data can be processed efficiently with high-speed feeds.

Rakuten has two types of targeted ads – Behaviour Targeting Ads (CPC) and Performance Assured Ads (CPA), especially on its Singapore sites.

For CPC, the company uses machine learning to generate recommendations, which are updated every day or even every hour.

With Aerospike’s ability to handle large volumes of data in real-time, it helps in processing these data quickly, he added.

Xia said this helps add more servers to the storage system to accommodate the growing data, without having to shut down the service or make major changes to the system.

This enables quick retrieval and delivery of ads to users, with minimum latency for a better user experience.

https://www.itnews.asia/news/rakuten-uses-real-time-data-platform-for-targeted-advertising-594223

[Kev0816]

Antwort auf Beitrag Nr.: 73.830.976 von FlankerStan am 11.05.23 12:07:58

Ich bin gespannt, ob sie morgen mit den Q1 Zahlen etwas zu diesem Schritt sagen. Kann mir nur vorstellen, dass man so CAPEX sparen möchte und in gewissen Bereichen weiterhin auf Roaming setzt.

[FlankerStan]

Aims to eliminate domestic roaming by end-2023, saving $1.3 billion a year

Chairman and CEO Mickey Mikitani said in February it aims to eliminate domestic roaming by end-2023, saving JPY180 billion ($1.3 billion) a year.

11 MAY 2023 Joseph Waring

Rakuten Mobile worked out a new three-year roaming agreement with KDDI and its subsidiary Okinawa Cellular, even as it targets significantly reducing roaming costs by the end of 2023.

Rakuten Mobile has long targeted discontinuing roaming on KDDI’s network to reduce costs as it expands coverage.

Its 4G networks reached 98 per cent of the population at end-October 2022.

Chairman and CEO Mickey Mikitani said in February it aims to eliminate domestic roaming by end-2023, saving JPY180 billion ($1.3 billion) a year.

More than 95 per cent of data traffic was carried on its own network in Q4 2022, up from 83 per cent in the same quarter of 2021.

https://www.mobileworldlive.com/asia/asia-news/rakuten-kddi-…

[FlankerStan]

KDDI and Rakuten Mobile Reach New Roaming Agreement

Tokyo, May 11, 2023 – KDDI Corporation, Okinawa Cellular Telephone Company and Rakuten Mobile, Inc. today announced that the three companies have concluded a new roaming agreement as of April 2023.

In order to contribute to the promotion of fair competition among mobile network operators in Japan, KDDI committed to providing roaming services through its au network to Rakuten Mobile from the launch of fourth generation (4G) mobile communication service until the end of March 2026. As Rakuten Mobile has expanded its own 4G network area to achieve 98% population coverage*1 since its full-scale commercial launch in April 2020, KDDI and Rakuten Mobile came together to review their roaming agreement.

Under the new agreement, KDDI will provide roaming services to Rakuten Mobile in areas not covered by the previous roaming agreement including select high-traffic shopping districts in Tokyo’s 23 wards and the cities of Osaka and Nagoya, as well as continue to provide roaming services for select indoor locations (subways, underground shopping centers, tunnels and other indoor facilities) and rural areas. The new roaming agreement comes into effect in June 2023 and extends to September 2026*2.

Utilizing these roaming services allows Rakuten Mobile to provide subscribers with a more convenient service by improving network connectivity rapidly and efficiently, while at the same time limiting its financial burden. Additionally, by promoting the shared use of its infrastructure, KDDI will drive both the effective use of its 4G infrastructure and the rollout of its 5G network.

*1 As of the end of October 2022. Source: Rakuten Mobile.
*2 Further extension of the roaming provision period will be decided based on discussions between both companies.

https://corp.mobile.rakuten.co.jp/english/news/press/2023/05…

[FlankerStan]

Since 2014 number of bank accounts has tripled

As of March 2023, the number of bank accounts at Rakuten Bank reached 13.74 million - since 2014 number of bank accounts has tripled

Number of bank accounts at Rakuten Bank, Ltd. from 2014 to 2023 (in millions)

Rakuten Bank's number of bank accounts 2014-2023

Published by Statista Research Department, Apr 17, 2023

As of March 2023, the number of bank accounts at Rakuten Bank, Ltd. reached 13.74 million. Rakuten Bank was the first online bank in Japan to surpass 10 million accounts. Since 2014, the number of bank accounts has almost tripled.

https://www.statista.com/statistics/1230750/rakuten-bank-num…

[FlankerStan]

Seven Bank ATM Charge & Rakuten Pay App Payment working together

https://payment.rakuten.co.jp/news/2023050800/

[FlankerStan]

News from Rakuten Securities

https://www.rakuten-sec.co.jp/web/company/newsrelease/pdf/pr…