Rakuten (Neutral) - Long-Promised Debut as Mobile Network SI Has Finally Dropped

Rakuten (Neutral) - Q2 21 Results Reaction: Roaming Costs Have Become a Big Deal

Rakuten Group (Neutral) - Testing the Waters on Further Funding

Rakuten Group - IPhone Adoption Boosts Consumer Offering Now that Funding Is Secured

Rakuten Group: Q1 21 Results - Profit Beat on One-Time Gains/Mobile Investment Accelerates

Seiyu: Back in the Mainstream Thanks to Rakuten

Rakuten Ramps up Logistics to Increase Lead in E-Commerce

Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

<p>Rakuten shares are down 8% this week on credit concerns and delays in network expansion. The S&amp;P credit downgrade is a lagging indicator but slower network deployment could have future consequences. A key theme for Rakuten Mobile this year is customer retention as it converts free trial users to revenue-generating subs and network quality is by far Rakuten’s biggest weakness. That mobile revenue is needed to offset aggressive marketing costs now that the pricing playing field has been defined. We expect peak operating losses over the next few quarters and that keeps us cautious on the story. We remain at Neutral.</p>

Rakuten shares are down 8% this week on credit concerns and delays in network expansion. The S&amp;P credit downgrade is a lagging indicator but slower network deployment could have future consequences. A key theme for Rakuten Mobile this year is customer retention as it converts free trial users to revenue-generating subs and network quality is by far Rakuten’s biggest weakness. That mobile revenue is needed to offset aggressive marketing costs now that the pricing playing field has been defined. We expect peak operating losses over the next few quarters and that keeps us cautious on the story. We remain at Neutral.

Rakuten Group (Neutral) - Credit Downgrade, Network Delays as Company Enters Toughest Stretch