Rakuten Group Inc. plans to reorganize its financial units by consolidating its banking, brokerage and credit card operations amid mounting losses in its mobile business, sources close to the matter said Monday.
Under its restructuring plan, Rakuten Securities Holdings Inc., one of the biggest online brokerages in Japan, Rakuten Card Co. and other businesses will operate under Rakuten Bank Ltd., the sources said. Its financial units have been showing solid growth.
The Japanese online retail giant will call off its earlier plan to float shares of the securities brokerage, a move that was aimed at improving its financial standing, according to the sources.
In a statement issued Monday after reports about the potential restructuring, Rakuten Group admitted to considering reorganizing its financial businesses without revealing details.
The move comes as the technology conglomerate posted a 339.4 billion yen ($2.2 billion) net loss for the year ended December, marking a fifth consecutive yearly loss, due to its struggling mobile business.
The mobile operations of Rakuten, which entered the industry around 2020 to challenge existing giants such as NTT Docomo Inc., have been unprofitable due to massive investments needed to install base stations nationwide.
