Rakuten, , has published its financial results for the nine months and third quarter ended September 30, 2019. During the period, despite an uptick in revenues, the broker still reported a drop in profit and income.
During the nine-month period, Rakuten, which also has through Rakuten Securities, reported revenues of ¥905.8 billion ($8.3 billion). When measuring this against the same period of the previous year, where revenues reached ¥790.3 billion, revenues have grown by 14.6 per cent year-on-year.
Although the e-commerce firm did report a growth in revenues, overall, the broker still reported a net loss of ¥14.8 billion for the nine months ended September 30, 2019. This is significantly lower than the net income the company reported in the nine months ended September 2018, which was ¥107.7 billion.
In the third quarter of 2019, Rakuten recorded an impairment loss on its investment in Lyft, a ride-sharing company, due to significant falls in the share price since the listing. In particular, the company wrote off ¥111.2 billion during the quarter.
Rakuten fintech revenue increases by 13%
Taking a look at the Japanese company’s fintech revenue, which includes revenue from the retail brokerage, Rakuten posted ¥354.0 billion in segment revenue. On an annual comparison, this is higher by 13 per cent.
Segment profit, on the other hand, was ¥50.9 million for the nine months ended September 30, 2019. Weighing this against the same nine-month period of the previous year, which had a segment profit of ¥51.9 million, profit for the most recent period has fallen slightly by 1.9 per cent.
For the Tokyo-based firm’s securities services, via Rakuten Securities, revenue and income both decreased, according to the report. This drop was driven by reduced commissions, which in turn were caused by a sluggish domestic stock market.
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