Japan Internet - Fresh Lows for Many with Rakuten the Lowest Since 2010

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Rakuten (Neutral) - Q2 22 Results Reaction: Mobile Losses Narrow but Little Good News Beyond That

Rakuten Group (Neutral) - Bank IPO a Step Towards Unlocking Fintech but Mobile Worries Remain

Rakuten (Neutral) - Q4 21 Results Reaction: Hard to Look past Mobile Losses

Rakuten Bank Tearsheet - Japan Largest Internet Bank

Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

<ul>
<li>The end of Rakuten free plans is unlikely to have a major industry read across although the end of loyalty point chasing should help save on promotional costs</li>
<li>Mobile erosion has likely peaked but full-year losses for FY22 will be higher than last year. We expect the progression to profitability to be modest</li>
<li>Listing the securities business is a positive as it surfaces fintech value but allocating proceeds from valuable asset sales to funding mobile is not</li>
</ul>


The end of Rakuten free plans is unlikely to have a major industry read across although the end of loyalty point chasing should help save on promotional costs
Mobile erosion has likely peaked but full-year losses for FY22 will be higher than last year. We expect the progression to profitability to be modest
Listing the securities business is a positive as it surfaces fintech value but allocating proceeds from valuable asset sales to funding mobile is not


Rakuten (Neutral) - Follow-Up on Q1 Results and Thoughts on a Securities Listing