Rakuten profit impacted by investments | RetailDetail

Rakuten profit impacted by investments

Rakuten profit impacted by investments

Japanese web giant Rakuten's profit dropped nearly 40 % in the previous quarter as it invested a lot in mobile and internet services. Turnover rose, albeit slower than a year before.

Viber investments

Rakuten's profit dropped 39 % compared to last year, when it reached a 11.6 billion Japanese yen (84 million euro) profit, now only 7 billion yen (51 million euro).

 

Turnover rose 8.3 % to 138.3 billion yen (nearly 1 billion euro), a smaller growth than last year when growth reached 22.2 %.

 

Part of the reason for the lower profit numbers were investments in the expansion of its online services and to attract more online members for its digital platforms like Viber - an Israeli company it purchased in February for 670 million dollars. Viber's number of users has grown considerably from the start of the year, from 408 to 608 million.

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