Rakuten Mobile achieved profitability in the final month of 2024 five years after launch, with chair Mickey Mikitani targeting full-year EBITDA to turn positive in 2025, driven by subscriber and ARPU gains.

The operator’s EBITDA in December hit JPY2.3 billion ($15.1 million). The figure for the full-year dropped by JPY98.7 billion from a year ago to a loss of JPY53.8 billion.

Mikitani attributed the move to profit to strong subscriber acquisition and increased ARPU due to improved network quality, as well as ongoing cost control and rising ad revenue.

He added Rakuten Mobile will be “a driving force” for the group’s future growth, accounting for 34.4 per cent of consolidated revenue growth in 2024.

Mikitani noted it covered annual capital needs without relying on new debt for the group. Capex fell from JPY169 billion in 2023 to JPY81 billion last year. The company noted some investments were postponed to 2025, with the outlay forecast to climb to JPY150 billion.

Service revenue in Q4 grew 40.3 per cent to JPY46.6 billion, with its operating loss declining to JPY46 billion from JPY62 billion a year earlier.

The operator added 1.6 million subscriber to take its total to 8.3 million at end-2024. Core ARPU increased 2.6 per cent to JPY1,770.

The company outlined its three-pronged approach to executing on its AI ambition, with 2025 to be the year of scaling after launching Rakuten AI for Business last month and its consumer AI offering in October 2024.

Chief AI and data officer Ting Chi noted the company plans to scale its AI foundation by adding useful deep learning applications across the Rakuten ecosystem.