Tokyo-based electronic commerce and internet company Rakuten Inc. today reported its consolidated financials for the fourth quarter and full year ending December 31, 2016, showing a quarterly decline in net income, while reporting growth in key operating metrics compared to 2015.
One of the group’s subsidiaries, Rakuten Securities, is one of the largest Japanese FX brokers, and operates regional businesses including in Hong Kong, following an acquisition of one of FXCM’s prior businesses nearly two years ago.
Skrill to Release Direct to Crypto Withdrawals FeatureGo to article >>
For the fiscal year 2016, Rakuten Inc. revealed that revenues from continuing operations pointed higher, coming in at ¥781.91 billion ($6.869 billion), a gain of 9.6 percent YoY from ¥713.55 billion ($6.269 billion) in 2015.
However, Rakuten group yielded an operating income of only ¥119.08 billion ($1.04 billion) during the twelve months ending December 31, 2016, a loss of -21.7 percent from ¥152.15 billion ($1.33 billion) in the year earlier. This figure was largely influenced by negative impact of higher operating expense which rose by 15.4 percent over the same period to ¥195.11 billion ($1.71 billion).
The same narrative was noted across the quarterly results, with operating revenues in Q4 2016 coming in at ¥ 222,559 million ($1,955 million) which is up 11.9 percent compared to ¥198,844 million ($1,747 million) in Q4 2015. The operating income though has dropped -44.3 percent when weighed against the same three months of the year prior. The figure was reported at ¥30,467 million ($267.79 million) relative to ¥54,745 million ($481.25 million) in Q4 2015 .
Back in September 2016, Finance Magnates reported on the Hong Kong subsidiary, Rakuten Securities HK, when the company launched a brand new forex account service under the name Rakuten FX. The move follows the expansion of Rakuten Securities in the APAC region after the company acquired last month 100 per cent of the shares in Australian foreign currency broker FXAsia Pty Ltd.