TOKYO — Rakuten said Monday that its net income for the first nine months of its fiscal year jumped by more than 60 percent, due to higher revenue as well as aggressive investment activity, which resulted in unrealized gains on stocks and gains on sales.
For the nine months ended Sep. 30, Rakuten posted a net income of 72.65 billion yen, or $638.98 million, up 63.9 percent over the same period last year.
The Japanese e-commerce giant said its nine-month operating profit was up by 58.8 percent to 120.16 billion yen.
Revenue for the period grew 20.9 percent to 676.48 billion yen.
“In domestic e-commerce services, the mainstay of [the] internet services [business], the Rakuten Group is making every effort towards further growth in gross merchandise sales and revenues by implementing various measures,” the company said in a release.
“These include programs with the aim of improving customer satisfaction, aggressive sales activities and strategies to enhance services for smart devices (smartphones and tablet devices), and further opening up the Rakuten ecosystem,” it added.
Rakuten said its overseas internet services business is also on track for improvement, thanks in part to the steady growth of Ebates. Revenue from Rakuten Mobile and Viber also increased substantially.
The company has been a very active investor in recent years, including in the period under review. It said it has been focusing on making investments in “companies that have new technologies or innovative business models.” These investments have resulted in unrealized gains on stocks as well as gains on sales of stocks.
Rakuten’s main business segment, internet services, recorded 22.3 percent growth in revenue in the nine-month period, totalling 482.72 billion yen. Its profit for the period more than doubled, coming in at 83.18 billion yen.
Rakuten does not disclose specific forecasts, but it said in a release that it is targeting “double-digit growth” in consolidated revenue for the 12 months ending Dec. 31.