Good afternoon, and thank you for joining Rakuten Group's 2023 Q2 financial results meeting. We have disclosed the latest consolidated financial reports at 3:00 P.M. today, and you can view this data on our corporate websites page for investors, along with the presentation documents used in this meeting. Mikitani will give a presentation. Miki, please go ahead.
Hello, ladies and gentlemen, by means online, I would like to offer a 2023 Rakuten, the Q2 consolidated financial result announcement. We would like to start the session. Thank you for coming. Today, for myself, I would like to go through the summary. The overall will be reported from myself, and then by segment by segment, the performance of the segment will be reported by the person in charge of that, the specific discipline, and also financial strategy at the same time. The OpenAI, the other day, we have made announcement of a strategic partnership. Inclusive of the initiative, we'd like to also discover-- ask about AI strategy, and Ting Cai will be reporting on this segment. First of all, the overview of our business.
In the fight, 26 consecutive years, we have been able to increase our revenue. Global, of course, GTV is JPY 34 trillion, and in terms of CAGR, it's +39.2%. Revenue, again, is going to be closer to JPY 1 trillion. In terms of 1997 to 2022, we have been able to grow very robustly over the years. CAGR is +56.9% during this time period. In terms of this quarter, in terms of consolidated revenue, we have JPY 497.2 billion, +9.7% year-on-year increase. In terms of the revenue, tremendously, we have been able to make a major improvement.
In consolidated non-GAAP operating income, last year, at the same quarter, it was about a minus negative by JPY 80 billion. This time is minus JPY 39.4 billion. In terms of the EBITDA consolidated on the rate, we have a JPY 33.6 billion positive that we were able to achieve. Dramatically, the mobile, of course, investment and return has been able to be obtained. The overall business is now in surplus, we're on the trajectory in achieving a higher growth. I would like to talk about marketing slightly and in the monthly active users. In Japan, as a business, we have exceeded 40 million.
40.5 million people now are doing the transaction on Rakuten Ichiba, and Rakuten Travel, and Rakuten Card is being utilized, utilizing various services offering, and this is 8.2%. In terms of this size, even, we are seeing a very high growth rate, as you have seen. More than that, I must say that Rakuten Ecosystem, the royal users are increasing and on the rise. In terms of the research, those people who utilize more than 2 services is 76.7%. Respectively, the business segment, I would like to touch upon the performance of the business segment. First of all, internet service. This is shopping, travel, or advertising, and the sales is at JPY 294.7 billion year-on-year, is plus by 11.7%.
Non-GAAP operating income, excluding the investment business, there's a 4.3% + positive. With that being said, this time, Rakuten Mobile, especially the shopping, the contributions are large and significant. Therefore, SBO costs, the mobile SBU cost, in the Rakuten internet segment has been transferred to the internet segment. With that, we are going to grow, have grown by 16.6% year-on-year +. In term more than the revenue growth, the so-called the profit structure is even better. This is what we call the golden ratio. In terms of the revenue, the profit are further larger in growth and significant than the growth of the revenue.
In terms of the domestic EC, year-on-year, in terms of total GTV is +10%, is at JPY 1.5 trillion. Especially large sales is also doing very well. Also at the same time, Rakuten Travel, year-on-year, it's, I would say, Q3, before COVID, compared to before COVID, is +36%. Especially what needs to be highlighted is fashion is doing very well. In terms of total GMS, the recent 12 months is JPY 1.1 trillion. It's year-on-year +9%, and U.S. membership business, the Rakuten Rewards, is $2.7 billion, with the current conversion rate, is going to be JPY 300 billion, exceeding that level of yen terms.
Doing very well as a trajectory of our business. Fintech-... with this again, well, yesterday, at Rakuten Bank, a very good, of course, track record has been so reported already. Of course, 13.3% of achieving JPY 181 billion, and non-GAAP operating income is 31.2% percentage plus, and JPY 33 billion. The highlight is Rakuten Card. It continuously is doing riding on a tailwind. It is handling JPY 5.2 trillion, 16.3% year-on-year growth. The Rakuten Bank is now close to JPY 10 trillion, plus 16.9% year-on-year growth, and Rakuten Securities deposited asset. How we were able to stabilize the profit?
In terms of the transaction commission, we will also be able to drive profit and JPY 22.2 trillion. Again, a very strong, robust number. Rakuten Card is 29.24 million +9.5%, so close to 30 million cards right around the corner. Rakuten Bank accounts, year-on-year, +10.8% positive, doing very well as well. Rakuten Securities, the general account, accounts for 9.24 million, +14.8% year-on-year. With that being said, the mobile business. Let me describe about the mobile. In terms of revenue and profit, it's the segment is +13.3% revenue positive, and non-GAAP, OI, is JPY 37.2 billion.
It has improved in terms of the revenue, and even the basis is plus by JPY 42.6 billion. Year-on-year, there is an improvement that we were able to make. What have been achieved so far is that, first of all, the coverage of population is 99.9% coverage. Newly, the new initiative, a roaming agreement that we have concluded, is a high-quality, non-limit utilization. I would like to describe this later on, but MNO subscribers numbers have over increased. It is now free of charge, now it's with charge. We had dropped, but now it's coming back in terms of the growth trajectory as well, so good, seeing a good sign. Also, the entity, institutional, of course, contract is going up.
ARPU, is year-on-years, is plus by JPY 736 plus, so it's have exceeded JPY 2,000 as of now. The most important thing is the churn rate had dropped significantly, making a, a huge improvement. Rakuten Symphony, the project also is pursuing very steadily.
From here and onward, a big topic about the Rakuten Mobile social contribution, and also as a business, how it is performing, will be covered. Myself, what we want to realize is unlimited low price and high quality. How can we provide this in a low price to all the citizens of Japan? How can we provide this to them? With that, we can help their household budget and revitalize the economy, more they can spend their money into more meaningful thing. This is the, the Rakuten Mobile social mission, we believe. Why do we say so? Because the smartphone are not a voice communication tool.
It can become a TV or magazine, or maybe, or a TikTok or Instagram, and then the self-assertion or self-expression, the place, occasion, and it will become a wallet, and then it will become a securities companies, and maybe they can serve as a doctor in the future. They will become AI, and then become another brain of yourself. With low cost, and then the penetrated broadly, and then without the worrying about the data volume, it should be used. That is our strong mission statement. As a result, now the price is increasing in the market, but the mobile phone price in this 2020 with the entry of Rakuten to this mobile market, and then the, The price had become low prices since then.
It used to be JPY 6,755, but it went down to JPY 5,073 on average about the mobile phone monthly fee. This is not just because of the Rakuten Mobile's efforts, but now is contributing to return the JPY 4 trillion back to the household. Let's say a family of 4 members, and then using unlimited data calls, and looking this as an example, throughout the year, a family member of 4 and more than JPY 200,000 can be saved. If it, it will become more than JPY 2.1 million in 10 years, that can be saved.
Maybe they can use that money for their travel, or maybe they can shop at Rakuten Ichiba or make it for their investment, or maybe the tuition can be paid by that. That can be realized throughout this. This is, Rakuten Group, all of the employees or Rakuten Ecosystem members, the strong intent is working to make this happen. In other words, we want to democratize the mobile phones. The low cost, high quality, and unlimited data usage is something we would like to realize. However, this is a business, let me talk about the benefit.
I will be talking data, but in terms of Rakuten Ecosystem, the contributions are very significant. This is a, is a very strong message. How large the, in terms of those subscribers of Rakuten Mobile per year, the service fees is. More than 2 services are being utilized. Use, it's a quite a, a, surprising number overall group already. Over, 12 million new use are increasing. Rakuten Ichiba, those people who only utilize, will now be surprised with Rakuten Card. Those Rakuten Card users are now they are going to go into Rakuten Bank, opening a deposit or Rakuten Pay. The royalty is really exploding, in terms of utilizing multiple service from our Ecosystem.
In term of GMS, before contract, after contract, in a flat ground basis, a +35%, 53% in terms of increase. In terms of ARPU increase, it's JPY 720 overall in terms of ARPU conversion. The group contribution is now JPY 9 billion, and contribution and EBITDA is +JPY 5 billion on a quarter. We now have JPY 20 billion as of now. Furthermore, utilizing data, utilizing AI, by doing so, the JPY 700 trillion, the target, we'd like to achieve JPY 1,500 in terms of the group ecosystem contribution, which we believe that we'll be able to attain. In other words, in terms of, it's, it's not included in the earlier report, but it's quite interesting.
Rakuten Life Insurance, the sales agent, it could also, as a registered basis, but they can sell Rakuten Mobile, so that number is also on an increase. Life insurance is very expensive, and of course, let's say Rakuten Mobile, being covered by the Rakuten Mobile, the cost saving of the mobile, of course, payment, you can pay that to avert that to life insurance payment premium. Then the lifetime value, ANP, Annualized Insurance Premium of new policies. On 4.4 times is going to be the benefit that will be brought about. In other words, with mobile, again, to reiterate, saving the payment for the mobile, you'll be able to utilize that for this future guarantee of, and in covering, getting cover of a, a insurance that may be of use at contingency.
A very virtual cycle with 4.4 times of value, and also what Tareq explained earlier.
This is a very big project, as I explained earlier, and the three companies, for example, NTT, and using the, the government, the budget to create the, the network and which is privatized, and then other providers are doing. We did this from the scratch with the power of venture, tried to establish the mobile network. This is to cut into the monopoly environment, oligopoly environment, and that was started back in 2020. Having said that, unlike the overseas market, the government has not been supporting us, so we have to manage it on our own. Therefore, we aggressively establish base stations, means we opened up the base station with the virtualization technology to accelerate opening up the station build.
That was from 2020, this year is phase 2, we have been aggressively opening up base stations. First of all, we would like to optimize our cost. Also network, we have a roaming partner, KDDI. That will increase on, like other providers, maybe we, we can cover the much coverage than other providers and better performance. The 3rd one is marketing. We want to sophisticate the marketing based on the region or using CRM for the marketing. The 4th one is Rakuten Strength, which is the relationship with the client. We want to set up or start the B2B business. This is a big goal in 2023, the phase 2 is about to complete.
That is our impression. Probably from Q4 this year, we will be able to start Q3, meaning, first of all, we make this business into the profitable. Then we want to follow the path to become the number one mobile carrier in Japan. In some, I've already explained this to the investors. First of all, the monthly so-called operating cost. Mobile, the cost optimization target is JPY 15 billion per month. This is quite aggressive target that we set up. As of June, we've already achieved JPY 12.9 billion cost saving, which is 86% of cost optimization target. We've already achieved that.
The remaining, which is JPY 2.1 billion, and it is already foreseen, probably we, I, I think we can achieve that. Because we're using software and automated, automation is possible because of the software, and then this is quite rare, the very efficient management in the global businesses. The second is about the coverage, as you know, the Rakuten Saikyo Plan was launched. New roaming agreement was concluded, we are going to leverage them to increase the coverage of 99.9%, and with the areas with unlimited high-speed data. Another point is, maybe this is surprise to you, we have some fact data from the Opensignal. Opensignal is a market research company, this is the report from them. Among the 38 prefectures...
in 16 prefectures, the network coverage, the highest net coverage we are. It means we can provide the services in 16 prefectures. Using this, why? Because we have a better operation, and then the site location is managed by AI. Around for this year, KDDI roaming agreement would be becoming better, and we will have better coverage in location. This dark pink portion, so rank one or rank two, other parts will be expanded with those things. Well, Rakuten Mobile, 16 out of 38, Rakuten Mobile is the most covering and the number one in those areas. Other than that, performance and this the virtual technology, how about it?
Someone is quite suspectable about the virtual technology, but 4G and 5G download, upload speed, we are the surfacing others, and we have the fastest speed in here. Including these facts, well, in the past, when we make our services from free to the paid basis, and the churn rate back then was 7%-8%, but in 1 month, going other carriers wanting to have some point, excluding them, the actual churn rate is 1.4%, which is on par with other 3 major carriers. In near future, probably in 1-2 weeks, 5 million subscribers will be possible to achieve. We are quite near to that.
Another highlight here is the Rakuten Group, we have more than 900,000 clients, and how to empower those clients? Well, the Rakuten Ichiba's business and the travel or advertisement revenue, then we have been contributing using those powers. To the other clients, low price and easy to use, and the corporate agreement, we want to sell this B2B contract, and we are targeting B2B subscription target 1 million by the end of this year. Looking at other companies and looking at the B2C or B2B, there are big price differences. However, in terms of Rakuten, there is no big price gap. This has become a really profitable business.
Now we've already started selling this corporate mobile, and then, we already get some voices from the actual corporate users. Please watch the video.
Rakuten Mobile's Saikyo Plan has been launched for the general public, and now corporate customers are also benefiting from the strongest mobile service. Rakuten Mobile's corporate service originally comprised of three plans, which all had limited data usage. Now, the offer has been enhanced with three updates aimed at providing the strongest service at a lower cost. The first offers unlimited data and free calls through Rakuten Link Office. The second is an upgraded version of the existing limited data plan, and the third is a new data-exclusive plan. This is set to be enhanced further with the upcoming release of the Rakuten Link Office desktop app.
Japan's corporate mobile market is estimated to comprise of around 36 million phone lines, and within this market, there are as many as 900,000 client and partner companies connected to Rakuten Group businesses such as Rakuten Ichiba, Rakuten Travel, Rakuten Card, and Rakuten Payment. These companies, which have already established bonds of trust with Rakuten, represent a promising opportunity for Rakuten Mobile to increase its corporate customer base. We paid a visit to one of the businesses that has already signed up to Rakuten Mobile. MIC is a company that offers a wide range of services to promote sales for businesses, such as platform provision, design, and printing. It operates across six offices in the Kanto region. We asked a company representative about why they chose to sign up.
Rakuten Mobile's corporate sales staff are now all concentrated together on a single office floor. Each morning, they gather for a busy all-hands briefing to get updated on the latest sales findings and figures.
... With all members being so close at hand, it makes it easier to share information and get a firm grasp of current business strategy, as well as the situation among neighboring sales teams. As such, the office floor is often lively with conversation.
I joined Mobile Corporate Sales Department in November 2021, and since then, it changed and grown at such a rapid rate.
I.
If you're interested, please, on the web, you'll be able to see the whole reel. With that, the corporate contract is increasing quite steadily. Again, this is Rakuten Group's what we are best at, what we're good at. Last but not least, I'd like to talk about data AI and slightly about fintech as well. First of all, data AI strategy. The other day, at Rakuten Optimism Conference, we announced. With Sam Altman of OpenAI, with the CEO, Sam Altman, the right service opening, the basic agreement has been concluded by means of memorandum understanding. For us, internally, utilizing OpenAI, but not that alone, to our client, Rakuten Ichiba, merchants, and hotels, and against client, we'll be able to develop and also share and offer an AI services.
That's what we're intending to do. Rakuten Group, in a nutshell, the marketing strategy, AI strategy, data strategy. Rakuten's data is truly, is a very rich data set that is second to none around the world. Marketing efficiency, therefore, would go up by 20%, and also internal operating efficiency, including coding as well. That is also going to increase by 20%. For instance, Rakuten Mobile. Why we would be able to operate in such a low cost or manner? Is because many of them are being automated, so this is could be done by software. If you're working hardware, it's difficult to automate hardware, but the container cloud developed containers, so it could be automated. Automatically, it can scale up, automatically it could switch over, automatically it could seek optimization and efficiency.
That is, the reason why it is enabling that service. That is Rakuten Group, not us alone, utilizing AI and getting better, but it's really the merchant of Rakuten Ichiba, and also the inns and hotels, accommodation, various clients of ours, and also, business partners. We'll be able to bring about 20% efficiency. It's really by means of empowerment. That's a concept of Rakuten Group. Utilizing AI in the empowerment, of course, and is what we are trying to achieve. OpenAI, and also working with them, the various, service and product will be offered. Rakuten Group proprietary, of course, AI development is also is underway.
With that being said, the other, last but not least, this is not directly related to AI, but already part of the mass media have covered this story in terms of reorganization of our structure. We have online, offline, and there's marketing and data. How are you going to combine them together is going to be a very important name of the game. Online, Rakuten, not that alone, but we are also be working in offline as well. Therefore, Rakuten Card and QR code, Rakuten Pay through QR code, and also Rakuten Point, and Central Africa, Airi. Those are something that we have been doing in the past, but this is going to be integrated, so it's a total cashless payment company. We're going to evolve our business.
Rakuten Card Corporation, below that, we have Rakuten Payment Corporation, will be under the umbrella of Rakuten Card. Just as a reference, the competitors, competitive competitors already in the past, 12 month, the total GTV is JPY 27.4 trillion. Therefore, we are going to achieve JPY 30 trillion, very close to achieving JPY 30 trillion. Within the world, I must say, is a very strong settlement platform, payment platform, and a platform that's highly credible and reliable. One of the synergy that we are foreseeing, we made an announcement, Rakuten Pay Terminal, the other day. Within this terminal, Rakuten Mobile's full LTE is already LTE is embedded, and therefore, in terms of pay without paying the mobile payment, this could be done outside, inside.
Sometimes, there may be a area that's weak with Wi-Fi, but you can still utilize them at the restaurant when you're doing a payment. If you bring a credit card, you don't know, sometimes it could be utilized in other means. In front of you, you could pay, do the payment and settlement. For us, not only Rakuten Pay alone, but PayPay, d Payment, au PAY, and other credit, all the credit cards, American Express, Visa, Mastercard, JCB, Diners, Discover, and also e-money also, covers all these e-monies. Points, Rakuten Point. You'll be able to pay with Rakuten Point. It's integrated anywhere in use, terminal. In the free market, outside, inside, anywhere, you'll be able to utilize them. We made this announcement the other day.
It is a very strong, it's learning a lot of strong attraction interest. This is one of the IoT technology in Rakuten. This is one of the small example how what we can do with this technology. That will be all for my part of the presentation, and I would like to pass over to, as I mentioned, mobile internet, fintech, and also the other department. Quite succinctly, we would like to present for each of the divisions. Thank you very much.
Thank you very much for joining to our earnings meeting today. Kentaro Hyakuno is speaking. Rakuten Mobile and Rakuten Symphony is under my management as well. Today, before this presentation, we have announced on Monday about the Rakuten Mobile and Rakuten Symphony's new organization. I would like to re-explain about the organizational change of that. First of all, business starters, and Rakuten Mobile for this year, as mentioned earlier before, we are going to improve the operation and the quality to expand our business. As a result of these initiatives, the next phase, we are foreseeing the unprofitability turning into the profitability.
From the year beginning to Tareq Amin, I told him to work more on the Symphony side, and the CTO, Sharad Sriwastawa, it has been serving on behalf of him for the both operation and development side, and the Symphony side. The starting and launch phase to the expansion of the business phase, they have been transiting, and it's in line with our plan. Under that environment, Tareq, he had been consulting with me about his personal matter, and we have been discussing how every... His personal situation has not resolved, and we had a discussion, and as of August 7th, he decided to resign from this company. I am really appreciating his efforts, and I would like to send my ale to him.
As after that, and as already announced, the CTO, Sharad, at the Rakuten Mobile, his family name is quite complicated, and Sharad had become the co-CEO and CTO at Rakuten Mobile since then. Then, the co-CEO, the Kazuhiro Suzuki and Sharad would be leading these mobile businesses. The Rakuten Symphony side, Mikitani-san is a representative CEO and chairperson. Sharad would become the representative of the President, so these two leaders would be accelerating the business of Symphony. Sharad, about 30 years he had been experiencing in this industry, and then in mobile, technology, he is a quite a expert, and then he joined the Rakuten Mobile in September 2018, and 2022, March.
Since then, he, he has become the CTO, and then in 2022, April, the Rakuten Group, the managing director, he took the position, and introducing the Open RAN, the full virtualized cloud-native network. This is a cutting-edge Rakuten network technology, development, and operation under his responsibility. He is taking care of the core or the hard part of the Rakuten Mobile, that he is leading that part, Sharad. This new organizational structure, and Rakuten Mobile, and Rakuten Symphony will be accelerate- rating their businesses. Today, Sharad is not here overseas, but he is joining this, the call, and later he would be introducing himself to you. Next, from Suzuki-san, he would explain about the mobile segment, financial results of the Q2. Good afternoon, everyone, and Rakuten Mobile co-CEO, Suzuki is speaking.
I would like to cover the mobile segment business performance. First of all, Q2 revenue. Entire mobile segment was JPY 80.1 billion, comparing to the previous year, it's minus 0.9%. Rakuten Mobile alone, made double digit growth, which is 13.3%. Others, related energy business, worry about the procuring, the cost was increased, therefore, we control the sales. That why it has a negative impact to this, the Rakuten Mobile stand-alone revenue has been steadily growing. OI, mobile segment total, or Rakuten Mobile stand-alone, significant improvement was made. As shown in this graph, continuously, we have been growing revenue and improving the operating income. We have been achieving both factors. As for the revenue, as explained before, there are some seasonal factor.
New fiscal year, device sales will increase. That is a seasonality. Because of that, Rakuten Mobile revenue, seems to be stagnating, stagnated, however, the communication part is growing steadily. With that, segment operating income or segment EBITDA based, the profit, made a significant improvement. Maybe everyone is interested in here about the quality, network quality improvement timeline. A new roaming contract was made, the in Tokyo, Nagoya, Osaka region, for those the metropolitan areas, we have this available area with this new roaming contract, so we have more coverage with that roaming contract. This is in the final stage for the adjustment, and this will be starting shortly. From by autumn of this year, we will see a big improvement with that.
Looking this from the nationwide basis, what we are able to continuously use these areas, and then even in this area, we have changed some parameters or the setting change, and then we see improvement with those changes. It's improving, and that will be the showing certain results, good result in autumn this year. Through these initiatives or our efforts, so the Rakuten Mobile's users awareness changed a lot. The Rakuten Mobile users, so they have intent to continue using Rakuten Mobile. That is about more than 77%, and this is a fact data. The subscribers using other carriers, but for the destination for switching over their device, and then these 30.7% are thinking Rakuten Mobile as a destination.
Among that, 42.3% of the people say that after the announcement of Rakuten Saikyo Plan, they are quite serious about switching their device to Rakuten Mobile network. We are improving network quality like this. The people tend to think that the applying to the subscription is quite cumbersome, we are improving that process. In July this year, as for data SIM, very simple sign up, easy sign up and activation was made. At minimum, 3 minutes is needed for signing up and activation, we started this service, which is highly appreciated by our users. We will expand this service. As for voice SIM, without eKYC, the easy sign up and activation will be possible. That service will be started, we are aiming for that.
If the, that person is using Rakuten finance services, and then there are some limitations that the person is living here. The, this kind of the epoch-making sign up activation or easy sign up process will be contributing to increase the application of new users. As network quality improvement and the streamlining application processes will be accelerated toward autumn of this year, at that timing, we'll be thinking of new marketing initiatives to be launched so that we can accelerate the things.
In terms of the line that has opened, B2B, B2C, the number of subscribers, we have 4.81 million in total. The Q2, the net increase is a total of 240,000. Again, it's now on a growing trend as of now. This single month of July, at 100,000, we were able to add on top of, on top. End of July, we have 4.91 million. The Q3, we believe that more than the Q2, we will be able to seek a larger growth rate. On top of that, in churn rate, again, we have seen a reduction and decline.
After the announcement of Saikyo Plan, part of the, in terms of those people who go after the points, this given month, that subscribe and leave on the same month, excluding those people, after the adjustment, the churn rate is 1.4%. Now it has been declined to the level of the industry standard. Again, ARPU increase. Again, we are seeing a very robust growth on the ARPU as well. The mobile data ARPU improvement, plus some of the option ARPU improvement are also growing very steadily. Together both, we have a ecosystem ARPU uplift, ecosystem ARPU uplift.
Rakuten Mobile, after subscribing and the user subscribe to Rakuten, compared to non-subscribers within 12 months, Rakuten Ichiba, the money that they spend on Rakuten Ichiba, totally different, quite significantly different. What sits on top as a plus is a monthly value, which is an uplift. In other words, Rakuten Mobile ecosystem of Rakuten, the benefit is quite significant and large as of now. Average data utilization volume is again growing steadily. And the end of June, the average data utilizes exceeding 20 GB. In the future, the large volume data era that we are foreseeing, YouTube and Live, of course, streaming, you participate and watch, and Web3-
... that's virtual, the world of virtual reality is coming around the corner. These upcoming data explosive era, we need to be prepared for that. For us, already, unlimited data utilization is a plan and program that, that we offer today, and of course, in term unlimited data, the value of that is going to be much, much more significant, and that is what we are expecting out of this trend. Cost optimization. Let me report on the progress that's been made so far. As I have and have been described, last September, in a single month, the monthly cost was maximum. It was JPY 39 billion, and it has been reduced, or it will be reduced by JPY 15 billion. Various, of course, programs, initiative are implemented.
The roaming, of course, cost is one thing. Of course, opening a base station and the construction cost in terms of the outsourcing and logistics and human personnel costs, these details. By accumulating these areas, we are already underway to reduce the cost. On top, top of that, customer acquisition cost, we have we've been reserved utilizing TV commercial, and also underperforming shops have been closed. By doing so, this time, we are strengthening our cost reduction effort, and already this year, the Q3 target is already being achieved within the Q2. That's where we are today. That what we have promised in terms of the reduction of JPY 15 billion is now already is evident. We will be able to achieve this goal, therefore. Platinum band.
Regarding platinum band, I'm sure this is the area of all of your interest. 700 Meg are already... We are in due preparation of that. This year, in fall, 700 Meg, the allocation, if we are going to be certified and approved, on a quickly, quick scenario, the first, of course, start on air could be started at the end of this year in December. This is, of course, with MIC. If they are going to approve the allocation by the Ministry of Internal Affairs and Communications, we are working towards getting approval from MIC as of now. On top of that, 800 Meg and 900 Meg. These hertz continue seek in parallel, we are considering of these bandwidth. 700 Meg on top, 800 and 900 Meg.
Together, these opportunities will be tapped in seeking for a optimum network establishment. That's what we are considering as of now. In terms of reduction of CapEx, in 2023, 2024, 2025, the three years, we are going to reduce by JPY 300 billion in terms of reducing the CapEx. This year, already in a single year, we have been able to the initial plan of JPY 300 billion, we've been reduced by JPY 100 billion, so in other words, JPY 200 billion. We have been able to achieve this goal. Just as a reference, and this number, as I've said, the platinum band-related CapEx partly is already included as an assumption.
Platinum band, in securing the platinum band, still there may be additional CapEx that's needed, and that may be of your concern, and we are aware of that. But in our case, the existing base station could be maximized in use. Existing base station, the new antenna, and radio is going to be attached. By doing so, it's low cost, but still be able to roll out the service. Furthermore, as being talked about already, it's based on software. Our network is a universal server, and software are being utilized. The software update is going to enable to lower the cost further. That is something that's viable.
Updating the software and updating a software, one of the benefit is, of course, reducing the cost on one thing, but also in terms of minimizing the construction hours and time being spent is another benefit. Of course, we're seeing a rise in terms of securing people, and the wages are rising, and the update by leveraging this capability, we will also be able to minimize the construction cost and time as well. This is the summary slide. First of all, in terms of revenue, the revenue, of course, is terms of the number of subscriptions, number of subscribers, which is B2B, B2C. In total, we have JPY 8 million to JPY 100 million, and by multiplying this monthly ARPU figure is going to equal to the revenue.
On top of that, the others, the other devices, MVNO, ISP service, other service is going to be sitting on top. Basically, this, of course, number subscribers multiplied by ARPU, the monthly use, value, is going to equal to the revenue. For this, again, sorry to iterate, but new KDDI, the new roaming contract is going to be concluded. Network quality, therefore, is improving down the road. On top of that, 700 megahertz, platinum band allocation is going to be certified. Further, the network will be further improved in coming years. On top of that, after fall, a large campaign, marketing will be conducted. We'd like to seek a high awareness of the so-called Saikyo Plan.
On top of that, as I've said already, in terms of easy and, and handy way of getting to be subscribed, and easy way to be activated, no cumbersomeness. That also will improve in accelerating the higher subscription and subscribers. This is the revenue part. On, against that, in order to make it black, the surplus, the network, and also in terms of the SG&A cost, how are you going to manage this is a very important area. As you can see, JPY 23 billion-JPY 25 billion per month is the world, is what we can be able to achieve. This is feasible. Reducing the cost, at the same time, increasing the number of the subscription and ARPU, ARPU, so we'll be able to achieve breaking even point as quickly as possible.
That will be all for my part. Thank you very much.
Okay, next about the overseas business, Rakuten Symphony business performance, to be represented by Sharad.
Konnichiwa, this, this is Sharad Sriwastawa . I know the last name is difficult, so Sharad. I've been part of RMI since inception. I was deeply involved in all the acquisitions and the formation of Symphony, and of course, as RMI CTO, I've been the biggest customer for Symphony and very much familiar with all the product line. Now, with this new position in Symphony, I hope to bring the end-to-end delivery and operations experience to play, which will actually benefit our end customer and indirectly will help us to increase the revenue. Let me go over the Q2 achievements. We have closed quarter of strong progress in both product development and customer acquisition across all business segments.
Some of our key highlights for the past quarter include: on the cloud side, strong traction in channel partner sales for both Symcloud Storage and Symcloud Platform products. Among others, we secured a deal with a digital media company in U.S., successfully deploying Symcloud Storage in many states there. In addition, we closed a global deal with a private 5G channel partner, for which we will be providing the underlying cloud platform. On the RAN side, the major focus has been maturing the product to make it brownfield-enabled to cater more than thousands of new requirements for brownfield operations. In this quarter, most of it has been achieved, and in next quarter, we'll be doing the trial with one of the tier 1 operators.
On the OSS/BSS Business Unit side, we have successfully expanded our footprint, our, of our Site Manager in U.S. Now we have more than 3,000 monthly active users, which we plan to increase to 6,000 in coming quarter. On the internet services, we have been finalizing our key B2B contracts with prominent resellers in both Japan and Korea for Rakuten Drive. Regarding CPaaS, we have added a significant number of partners and customers to grow our ARR to $3.2 million in the past quarter. We can move to next slide, please. As I said, main focus has been on the O-RAN side. While we are continuing to deliver major milestones with our anchor customers, we are working to get our O-RAN software ready to conquer the massive global brownfield opportunity.
Our proven O-RAN maturity in both 4G and 5G is based on more than 25 global, successful global POCs and field trials, alongside large-scale commercial deployments, of course, in Rakuten Mobile and 1&1 in Germany. Today, Rakuten Symphony is the leading provider of O-RAN software to cater to the complex requirements of large brownfield environments. Our strategy to conquer the brownfield space is based on two phases: First, to reach feature parity, which I said we are almost there, and the commercial deployment of O-RAN with one tier 1 operator. Then after that, we'll scale it to for O-RAN global footprint by engaging in further brownfield opportunities. Next slide. Coming to financial results. While our revenue has decreased by Y-o-Y, our operating loss has significantly improved.
In Q2, we could achieve $72 million, mainly driven by delivery with our existing global customers. YoY, this represents a decrease of 18.5%, mainly due to the seasonality and lumpiness of large B2B revenues. We expect a significant revenue increase in the next 2 quarters, along with delivery of major milestones with our anchor customers. Our key financial goal remains to achieve profitability. Next slide, please. Last week, in Rakuten Optimism, we announced that we have signed a memorandum of understanding with VEON. We'll start exploring cooperation in Ukraine, with the goal of accelerating the reconstruction of the country's infrastructure through collaboration on Open Radio Access Network and digital services. With that said, we have, you know, in Q3, the main objective is to have on field operator. Thank you!
Hello, everyone. Now, I would like to talk about the internet service. My name is Kazunori Takeda. I would like to report on our service. This quarter, the sales and revenue of, the revenue and profit, we were able to grow. This is the number that we were able to attain. Especially in terms of the total GMS, it's a 2-digit, 10% growth, or JPY 1.45 trillion again, is what we were able to achieve. In looking into the content, in terms of revenue, plus 13.5%, operating income is plus 12%, we were able to grow our business. Especially within that, the highlight is that you see the core, Ichiba and Travel, we have seen significant growth after COVID.
The seasonal changes and each of the merchant, their quite unique product offering, has been reflected in a good promotion and in the point scheme. As you can see on the right, a large, of course, sales event. Some stimulus has been proven to be very successful. As you can see, in terms of CAGR 4 years, 23.8% growth. With a large discount of sales event, we were able to achieve this goal. Rakuten Travel, as you may know, supporting the national promotion, travel promotion program, we have been able to grow with that against the 2019. Before COVID, it's +36%, so many travelers have enjoyed our service.
Especially, amongst that, in terms of the area of investment, into logistic business with JP, we were working with the Japan Post. In terms of domestic EC growth, 17.3%, we have been able to grow the revenue. At the same time, something that needs to be highlighted is the number of, sort of merchant under contract is +32.5%, and shipment volume is +62.9%. A large momentums have been created. Logistics around the world, the changes, that we've seen in transformation and our service improvement, especially the super sale, large discount sales, we had, the next day shipment, which we were able to realize. That is the reason why we have created this great wave.
Inventories, the store that has inventory, compared to those stores who do not have inventory, 9.1%, they have been able to grow their business. In the future, the last one mile also need to be improved in order to seek for higher growth in the operating income. The other factor is the overall domestic EC business. Where are we against the other competitors? As you can see here, the other competitors are only growing by one digit, and at the same timing, we were able to grow 12.3%. A very robust growth have been attained by us. At the same time, in areas of fashion, compared to ZOZO, the size is 2.5-fold, inclusive of merchant, Rakuten Fashion, inclusive of that, is 2.5-fold growth greater.
JPY 1.1 trillion, we'll soon be able to achieve. In other words, on the size, still, we are growing by 9% year-on-year. Also, alongside with that, the advertising business, utilizing data and the various brand, and tie up with a lot of merchants, 12.7% growth we were able to achieve. In 2023, it is going to achieve JPY 200 billion. The major TV broadcasting company, and compared to the media, media, it is on par in terms of the level of the scale that we were able to achieve. Utilizing leveraging data, we would like to further grow this end of our business.
Also, on global, the other internet services, as Mikitani explained, Rakuten, each international brand, Rakuten TV, Kobo, Viber, and Viki, are also growing, as you can see, and we were able to acquire many membership. That's all for the internet business.
Good afternoon, everyone. As for Fintech segment, Hosokawa will be presenting. As you can see from the chart, each of the company are performing pretty well. The overall, as for the revenue, JPY 181 billion and +13.3% YoY, and operating income, JPY 33 billion +31.2%, so very large number. First of all, looking at the revenue side, the last Q2 was $159.8 billion, but now, in total this year was JPY 181 billion. The Rakuten Card first, so the... Their shopping GTV is very large, and the speed was 16.3% YoY growth. Then Rakuten Bank, with the growth of the Rakuten Card, that their profit increased, also, with the loan, and they are steadily increasing the profit.
The Rakuten Securities and overall, the market was performing well. This is a big factor. As Mikitani-san mentioned, continuously the stable revenue making, we are trying to change the structure for that. The payment, well, now we have increased the business, revenue business, and then we can expect more from Rakuten Payment business and operating profit. The JPY 205.2 billion last year, and went up to JPY 33 billion this year. The Rakuten Card contribute profoundly to this. Rakuten Bank, we listed Rakuten Bank, and also we are preparing for the listing for the Rakuten Securities, and these are making quite high growth. The saving cost, controlling cost, and making a lot of profit.
As for the membership growth and the Rakuten Card, it's getting closer to JPY 30 million issuance. With the steady growth and from Rakuten Card, we want to leverage the ecosystem aggressively. Rakuten Bank account is getting closer to JPY 50 million, which is JPY 14.05 million, and the Rakuten Securities in our account is getting closer to JPY 10 million, which is JPY 9.24 million. It is increased by 14.8% YoY. Well, it's not but least. Every time we explained about Triple Three's progress situation, as I as repeatedly said, the 30 million target will be achieved in near future. Shopping GTV aligned with that, the most recent one year, getting closer to about JPY 20 trillion.
The target, GTV share of the 30% target went to secure the current situation. We are performing, the steadily, we are at 23.6% today. That's all from me. Thank you very much.
Following me, I'd like to talk about financial strategy. Hirose and myself will be describing. First of all, sorry to repeat, our commitment. These are something that we would like to pursue. In other words, no additional gross debt. In terms of procuring with the reduced or total debt amount, we're going to reduce them. Also, in terms of controlling the redemption, in terms of leveraging, the redemption level is something that we'd like to achieve. Intermediate to long term, we are going to have fivefold of the leverage of the fintech business. Number 2, in this year, in December, the initial call is going to coming in terms of the total JPY 68 billion of redemption.
We still have to make sure that this is going to be made as we have promised. In securing enough cash, a good, of course, bank institution, we'd like to enhance the relationship so that we'll be able to support us in securing a liquidity on this. This is Rakuten Mobile funding flow, and the flow of how we are going to procure cash. First of all, Rakuten Group. Within the group, the free cash flow is going to be increased. Internet service, the free cash is going to be increased. At the same time, each of the procurement of the debt is going to be done. Also, fintech is already independent in procuring this debt.
Dividend and management, of course, fees, we have JPY 70 billion in terms of revenue that has been derived of. This is also is going to be the cash that is going to be pooled within us. Again, the overall group, the cash management, this is included. Therefore, we're going to exchange CapEx, and also we are going to look into the dividend, and also the management of that altogether. Rakuten Mobile have their own, of course, a way of lease financing, as ECA financing, and also securitization of liquidation. Within the group, we would like to make sure that the Rakuten Mobile characteristics, we would like to make sure that we have a firm grasp of the management of the cash.
In terms of the, the histogram, you see the Rakuten Mobile, in terms of the funding, the overall is going down, and the CapEx also will be contained. Improvement of the business will be able to reduce this amount extensively. On the other hand, the Rakuten, as I've said, internal cash flow, funding, in terms of inclusive of, the those, non-performing, we're not going to depend on outside funding, but we're going to be self-sufficient in our funding. In terms of the maturity of the corporate, bond, equity-related financing, we'll be able to reduce the debt. At the same time, partly the maturity, laddering, is going to be utilized in the standardization of this. It's been very brief, but this was my description of the financial strategy going forward.
Good afternoon, everyone. Similar to Sharad, my last name is also difficult to pronounce. My last name is Cai. It stands for Conversation AI. Today, I'm very excited to share with you our AI strategy. As we talk about at the Rakuten Optimism Conference, OpenAI and Rakuten will collaborate to develop state-of-the-art AI services. OpenAI will provide priority access and support of their latest AI technology, and Rakuten Group will also provide Rakuten AI services into ChatGPT by leveraging OpenAI plugin architecture. In addition, we will jointly develop mutually beneficial economic opportunities and pushing the frontier of AI technology. Together, we hope to bring more value to our customers, merchants, and business partners.
Here's our strategy, is to leverage our unique data and latest AI technology as our existing channel. Data and technology is not enough. Channel makes us easily reach our customers. On data, we have an opportunity to combine the world knowledge of OpenAI with customer contacts of Rakuten, as well as enterprise knowledge of Rakuten. The enterprise knowledge is come from tens of thousands of professionals in multiple industry. These are not average human reviewers that typically AI company employs. These are professionals, insurance agent, e-commerce consultant, travel agent, with deep knowledge in multiple domain. Combined with our operation excellence, we can continue to grow our data asset and enhance the AI model. Generative AI has been a magic tool. We have seen generative AI can produce songs, and create poem, and generate essays.
It is a magical tool. We can do more than that. We can augment generative AI with our existing tools from search, from merchant tool, so it has the real-time information, real-time pricing, real-time inventory, so customer is easier to make purchase decisions. At Rakuten, we have been developing the deep learning technology so that our search, our recommendation, is much more relevant. Deep learning technology is a proven technology that search engine has been deployed for years. What's unique about Rakuten, it's its transaction data. Transaction data is high quality, much higher quality than click data typically you can find on the web. With high-quality transaction data, we can train the model to develop much high-quality search result, but also in a more, much more efficient way.
Also, by leveraging the existing channel of Rakuten, we can make the technology accessible to millions of customers and tens of thousands of business partners in Japan and around the world. We have issued 3.6 trillion points. We have over 6 million locations with Rakuten, Rakuten Pay. That rich online, offline, make the technology easily accessible to our customers, merchants, and business partners. With all the data, AI, and technology, we can build a flywheel so that every interaction with our customer is AI first, professionally reviewed, and customer validated. Security and privacy is at the core of our operation. It's not only necessary to comply with regulation and government requirement, but it's also an opportunity to earn customer trust every day.
For businesses, security and privacy is also open up new opportunity for us to offer secure and private services to our business partners. We are putting our strategy into rapid action. In the last few months, we have been prototyping with consumer applications, business applications, and also figure out a way to optimize our corporate functions. Let me show you some examples. Now, Rakuten Viber has ChatGPT integrated into their conversation experience, so you can easily access ChatGPT from Rakuten Viber. We have launched English version in February, then Japanese version in May, today millions of messages have been exchanged with AI chatbot. Recently, we also launched consumer services through Rakuten Securities, so people can ask investment questions, get educated about investment knowledge, so everybody can participate in the investment opportunity.
As we also mentioned at the Rakuten Optimism Conference, we are leveraging AI technology to help insurance agent to easily discover knowledge, help them draft content, communicating with their customer, so they can not only sell insurance, but also sell Rakuten Mobile as well. Also help them to have more free time to interact with our customer, have more face-and-face time. In the next few months, we will focusing on Rakuten AI technology for businesses, and then in the third wave, we will bring AI technology to our consumers. Rakuten offers a lot of unique advantage to take advantage of AI technology. Not only the unique data we have talked about, you know, existing channels and our culture of innovation, and all of that have attracted OpenAI to be our partner on technology.
Our ability to execute our engineering capability to prototype has proven to be a great asset for us to build partnership with world leader in technology. As we have seen, that human is super, with emotion, empathy, and creativity, and AI is super good at synthesize large amount of information, and create draft, and automate task. By combining both, we have unlimited potential to create new value for our customer, merchant, and society. Thank you.
That concludes the presentation for the account, earnings call. Thank you very much, all of you.