Rakuten Shares Plunge 12% Over Persistent Mobile Losses

Shares of Rakuten Group fell as much as 12% on Wednesday, marking the company's largest intraday decline in more than a year. The plunge occurred as investors expressed concern over the persisting losses within the company's mobile unit, which showed little improvement over the previous year despite being launched six years ago.

Rakuten reported its first net income in six years, though this result was supported by one-time tax credits and profit growth in its internet services and fintech segments. While the company's operating profit for the June quarter more than doubled, the figure still trailed analyst estimates.

Founder Hiroshi Mikitani led the company's entry into the Japanese wireless market, but the venture continues to struggle with mounting debt and stubborn losses in a saturated market. These mobile losses outweighed the gains in other business segments in the eyes of investors.