Rakuten Group Full Year 2024 Earnings: EPS Misses Expectations

Rakuten Group (TSE:4755) Full Year 2024 Results

Key Financial Results

• Revenue: JP¥2.28t (up 10.0% from FY 2023).
• Net loss: JP¥162.4b (loss narrowed by 52% from FY 2023).
• JP¥75.61 loss per share (improved from JP¥177 loss in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Rakuten Group EPS Misses Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 26%.

The primary driver behind last 12 months revenue was the Internet Services segment contributing a total revenue of JP¥1.28t (56% of total revenue). Notably, cost of sales worth JP¥1.96t amounted to 86% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to JP¥340.9b (71% of total expenses). Explore how 4755's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Multiline Retail industry in Japan.

Performance of the Japanese Multiline Retail industry.

The company's shares are up 3.3% from a week ago.

Balance Sheet Analysis

While earnings are important, another area to consider is the balance sheet. We've done some analysis and you can see our take on Rakuten Group's balance sheet.

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