Rakuten Group, one of Japan's largest e-commerce and financial services conglomerates, announced its seventh consecutive annual loss despite achieving record-breaking sales, according to financial results released on February 12, 2025, as reported by NHK. The Tokyo-based company reported a net loss of 177.8 billion yen (approximately $1.2 billion USD) for the fiscal year, continuing a streak of annual losses that began in 2018. However, the company simultaneously achieved its highest-ever revenue, driven primarily by strong performance in its financial services division and core e-commerce operations. For foreign residents in Japan who use Rakuten's various services—from online shopping and credit cards to banking and mobile phone plans—these results provide important context about the stability and future direction of a company deeply integrated into daily life in Japan. The primary factor behind Rakuten's continued losses is the massive capital expenditure required for its mobile network business, Rakuten Mobile. Since launching its mobile phone service in 2020, the company has invested heavily in building its own telecommunications infrastructure, including base stations and network equipment across Japan. These infrastructure costs continue to weigh on the company's bottom line, even as subscriber numbers grow. Despite the losses, Rakuten's financial services division showed robust performance. The company's banking, credit card, and securities operations benefited from increased consumer spending and growing adoption of cashless payment systems in Japan. For expats, this suggests that Rakuten's popular services like Rakuten Card, Rakuten Bank, and Rakuten Pay remain on solid operational footing, even as the parent company navigates financial challenges. The record sales figures indicate that Rakuten's core businesses remain healthy and competitive. The company's e-commerce platform continues to be a major player in Japan's online retail market, competing directly with Amazon Japan and Yahoo! Shopping. The loyalty point ecosystem that connects Rakuten's various services—allowing users to earn and spend points across shopping, travel, banking, and mobile services—remains a key advantage in retaining customers. For foreign residents considering or currently using Rakuten Mobile, the continued losses raise questions about the long-term viability and service quality of the mobile network. However, it's worth noting that telecommunications infrastructure investments typically require several years before becoming profitable, and Rakuten has repeatedly stated its commitment to the mobile business as a strategic priority. Industry analysts suggest that Rakuten's path to profitability depends largely on achieving sufficient scale in its mobile business while controlling infrastructure costs. The company has been working to improve network coverage and quality, which directly impacts user experience for the approximately 6 million subscribers currently using Rakuten Mobile. What does this mean practically for expats? First, Rakuten's established services like credit cards, banking, and e-commerce appear stable and should continue operating normally. Second, those using or considering Rakuten Mobile should monitor service quality and coverage in their area, as the company balances growth with cost management. Third, the valuable Rakuten Points ecosystem that many foreign residents rely on for savings remains intact and continues to be a competitive advantage. Looking ahead, Rakuten has indicated its intention to reduce losses while maintaining investment in key growth areas. The company's ability to leverage its integrated ecosystem—where users engage with multiple services and accumulate points—remains its strongest asset in the competitive Japanese market. For expats navigating financial services and telecommunications options in Japan, Rakuten remains a significant player worth considering, though the ongoing losses underscore the importance of diversifying service providers for critical needs like mobile communications and banking.