Rakuten reports quarterly loss on Lyft, mobile service


Rakuten Inc has reported an unexpected quarterly loss, hit by the depressed value of its investment in ride-hailing firm Lyft Inc and heavy spending on a new wireless service.

The company said it booked a 1.8 billion yen ($17 million) operating loss in the April-June quarter compared with a 61.6 billion yen profit in the same period a year earlier.

Rakuten, whose billionaire founder and Chief Executive Hiroshi Mikitani has a seat of Lyft’s board, recorded a 28.4 billion yen unrealized loss on its stake in the ride-hailing firm for April-June, as it had warned in July. It recorded a 110 billion yen gain in the previous quarter.

The results come a day after SoftBank Group Corp posted an unrealized loss on its stake in Lyft rival Uber for the April-June quarter. The two money losing ride-hailing firms are locked in a cash-burning battle for dominance in the U.S. market.

Rakuten cited an operating loss in its mobile services business, as it steps up investment in a new wireless service that is due to launch in October. The move will make it Japan’s No. 4 mobile carrier.

© (c) Copyright Thomson Reuters 2019.

©2019 GPlusMedia Inc.

No Comment
Login to comment

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites