TOKYO — Rakuten Group Inc. shares fell 10 percent Thursday, their steepest single-session drop in over a year, after fourth-quarter results showed the company's mobile division remains deeply unprofitable despite sustained infrastructure investment.
The mobile unit has consumed billions in capital as Rakuten builds out its domestic wireless network and chases subscriber growth, but the division has yet to generate positive operating income. Investors read the latest results as evidence that the timeline to profitability is extending, not compressing.
The selloff spread to Rakuten's financial arm. Shares of Rakuten Bank Ltd. also fell, reaching their lowest level in nearly a month, as fresh reports of potential fintech merger discussions added uncertainty across Rakuten-affiliated entities.
Macquarie initiated coverage of Rakuten with an Outperform rating even as it catalogued the structural risks facing the group. The brokerage flagged three specific concerns: refinancing of debt obligations maturing in 2027, slower-than-expected improvement in mobile subscriber metrics, and the possibility of additional impairment charges that could weigh on earnings and investor confidence.
