Rakuten, Inc. has published its financial results for the first half of the year. Although the Japanese eCommerce company and operator of a foreign exchange (forex) broker reported an uptick in revenues, it has closed out the period at an operating loss year on year.
During the six months ended on 30th June 2020, Rakuten posted revenue of ¥678.8 billion. According to the report published on Tuesday of this week, when measuring this against the same period of the previous year where revenue was ¥586.6 billion, revenue has increased by 15.7 per cent.
In the first half of 2020, Rakuten actually reported an operating loss of ¥20.7 billion, as opposed to the ¥111.9 billion operating profit in H1 of 2019. This was stronger by 24.8 per cent on a yearly scale.
For the 6 month period, the eCommerce company saw a net loss of ¥27.8 billion. For H1 of 2019, the company reported a 54.9 per cent increase in net income reaching ¥99.9 billion.
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Rakuten Fintech Segment Remains Strong
Taking a look at the company’s FinTech segment, which includes its securities business, segment revenue increased by 21.2 per cent, rising from ¥232.6 billion to ¥281.8 billion.
According to the financial report, profit for Rakuten’s fintech segment came in at ¥41.1 billion for the first half of this year. This is also stronger on a year on year comparison, representing a growth of 19.5 per cent.
“In securities services, the membership base continued to rapidly expand. In addition, an increase in domestic stock market commissions and FX commissions contributed to an increase in revenue and income,” Rakuten said in its financial report on Tuesday.
The fintech segment for the company covers a range of its services, relating to banking and securities, credit cards, life insurance, general insurance and electronic money.