Japan's Rakuten saw the operating loss at its communications business swell to JPY 12.2 billion in the second quarter to June, as the company gears up to launch its mobile network in October. Revenues from the business which includes its MVNO and the Viber app rose 24 percent year-on-year to JPY 27.1 billion.
Rakuten said it's been focusing on expanding its network of shops ahead of the MNO launch. As of July, Rakuten Mobile counted 543 shops across the country.
The number of subscribers at the MVNO rose to 2.2 million in Q2. Rakuten claims it was the number one online seller in the Japanese mobile market, accounting for 20.9 percent of subscriptions in May, according to data from MMD labo. It also led as a switching destination, attracting 22 percent of customers in April.
Rakuten's overall revenues for the quarter rose 13.3 percent year-on-year to JPY 306 billion, supported by steady growth in its e-commerce business and expansion in financial services. The operating result was a loss of JPY 1.8 billion versus a profit of JPY 61.6 billion a year earlier, including a valuation loss of JPY 28.4 billion on its stake in Lyft. Profits were hurt by increased investment in future growth plans, such as acquiring NBA broadcasting rights, rebranding Ebates as Rakuten Rewards and strengthening the logistics network and partnerships.
