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Rakuten (TYO:4755) 4Q16 Results: Revenue Beat, but Earnings Miss

Executive Summary

  • Rakuten reported 4Q16 EPS of (¥4.17), down from ¥1.25 in the year-ago quarter and missing the consensus estimate of ¥13.88. Revenues were ¥222.6 billion, up 11.9% year over year, beating the consensus estimate of ¥215.1 billion.
  • All segments reported positive revenue growth: revenue for the Internet Services segment was¥165.8 billion, up 14.6% year over year, and for the FinTech segment was ¥77.3 billion, up 9.2% year over year.
  • Although Rakuten did not provide full-year forecasts for 2017, it expects double-digit revenue growth, excluding securities services.
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