© Reuters. A view of a Rakuten Mobile branch in Tokyo, Japan, November 28, 2023. REUTERS/Anton Bridge
By Anton Bridge
TOKYO (Reuters) – When Japan’s Rakuten launched a mobile service network in 2020, the e-commerce and fintech giant promised to disrupt the world’s third-largest telecoms market. It’s done that in part, but the greater shake-up has been to its finances.
By any measure, cash-bleeding Rakuten Mobile is deeply troubled.
Founder and CEO Hiroshi “Mickey” Mikitani’s initial vision of a low-cost network using cloud-based software and cheap hardware did not pan out as infrastructure costs spiralled. A too-quick rollout earned Rakuten a reputation for spotty coverage it is still trying to repair.
The damage to its parent company has been significant – 13 straight quarters of operating losses amounting to roughly $5.5 billion and a huge amount of debt – $5.4 billion of which is due in the next two years.
Rakuten is set for another tough year in 2024 with investors keen to see if it can achieve its goal of having the mobile unit break even. It’s an onerous target that assumes jumps in both subscriber numbers and average revenue per user (ARPU) at a time when rivals…
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