I maintain a "Buy" rating for Rakuten after analyzing the company's third-quarter financials and its latest corporate moves. The group's operating profit jumped by 213% YoY in 3Q2025, with all three divisions contributing to the strong results. My view of RKUNY's collaboration with HP and the potential IPO of its card business is favorable.
Japanese e-commerce and finance heavyweight Rakuten is weighing an initial public offering in the United States of its credit card business, according to two sources familiar with the matter.
Rakuten Group, Inc. (OTCPK:RKUNY) Q2 2025 Earnings Call August 8, 2025 2:45 AM ET Company Participants Kenji Hirose - Group Executive VP, Group CFO & Director Ting Cai - Chief AI & Data Officer and Group Senior Managing Executive Officer of AI & Data Division Conference Call Participants Unidentified Company Representative Hello, everyone. Thank you very much for taking the time out of your busy schedules to join us today.
| Specialty Retail Industry | Consumer Discretionary Sector | Mr. Hiroshi Mikitani CEO | OTC PINK Exchange | 75102W108 CUSIP |
| JP Country | 29,334 Employees | 29 Dec 2022 Last Dividend | - Last Split | - IPO Date |
Rakuten Group, Inc., originally established as Rakuten, Inc., is a multifaceted corporation offering a broad range of services stretching across e-commerce, fintech, digital content, and communications to a global audience from its headquarters in Setagaya, Japan. Since its inception in 1997, the company has experienced significant growth and expansion, carving out major roles in various segments of the internet and technology industries. In April 2021, it underwent a name change to better reflect its diversified business portfolio. Today, Rakuten Group's operations are categorized into three primary segments: Internet Services, FinTech, and Mobile. Each segment plays a vital role in the company's comprehensive strategy to leverage digital innovation in providing value and convenience to users worldwide.
The core of Rakuten Group's offerings includes a variety of e-commerce platforms such as Rakuten Ichiba, an expansive online shopping mall known for its diverse range of products and services. Additionally, the company extends its internet services to online cash-back sites, travel booking platforms, portal sites for various needs, and digital content sites that cater to the entertainment and educational needs of its vast user base. Beyond e-commerce, Rakuten also engages in communication services through its messaging apps, sells advertising spaces across its platforms, and even manages professional sports teams, showcasing the company's diverse interests and investments in different forms of digital entertainment and engagement.
In the realm of financial technology, Rakuten Group has positioned itself as a key player by providing a wide array of internet-based financial services. This segment covers everything from banking and securities to credit card services, life and general insurance, and electronic payment systems. The company has also ventured into the cryptocurrency market, offering crypto asset (virtual currency) spot transaction services, demonstrating Rakuten's commitment to innovation in the financial sector and its effort to stay at the forefront of digital payment solutions.
Rakuten's Mobile segment signifies the company's expansion into communication services and technology, including the provision of mobile communication services. Moreover, it addresses utilities such as electricity supply, further underscoring the company's commitment to enhancing daily life's convenience and sustainability. Additionally, this segment supports digital content services, aligning with Rakuten's overarching strategy to integrate digital innovation into various aspects of consumer life.