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 === 2. Rakuten ===
 [[File:Rakuten Mobile.png|thumb|590x590px|https://global.rakuten.com/corp/investors/documents/results/]]
-Rakuten is a Japanese multinational company with operations in more than 30 countries and regions. It has over 28,000 employees and operates more than 70 businesses which span retail, financial services, mobile carrier services, fintech, security, etc. In the financial year 2022, Rakuten achieved a revenue of 1.9 trillion yen, representing 14.6% year-on-year growth. It also recorded 39 million active users or growth of 11.2% year-on-year in Japan alone. However despite its massive revenue and size, the group continues to record operating losses, driven mainly by ongoing investments in the mobile division, which also still struggles to attract clients. In the year ended 2022, the group recorded operating losses of 325.6 billion yen, representing year-on-year growth of 44.71%. The good news is that the operating losses in Rakuten Mobile continues to contract sequentially after peaking in Q1 2022. In Q4 2022, Rakuten Mobile operating losses declined by 5.33% to  $ -114.43 billion yen from $-120.869 billion in Q3 2022. Rakuten Mobile also keeps seeing substantial growth in revenue. In Q4 2022, its revenue grew by 75.2% year-on-year to $114,430 million. The division now has 52,003 4G base stations, with 15% of  base stations left to be constructed. It aims to achieve 99%+ coverage before the end of 2023.
+Rakuten is a Japanese multinational company with operations in more than 30 countries and regions. It has over 28,000 employees and operates more than 70 businesses which span retail, financial services, mobile carrier services, fintech, security, etc. In the financial year 2022, Rakuten achieved a revenue of 1.9 trillion yen, representing 14.6% year-on-year growth. It also recorded 39 million active users or growth of 11.2% year-on-year in Japan alone. However despite its massive revenue and size, the group continues to record operating losses, driven mainly by ongoing investments in the mobile division, which also still struggles to attract clients. In the year ended 2022, the group recorded operating losses of 325.6 billion yen, representing year-on-year growth of 44.71%. The good news is that the operating losses in Rakuten Mobile continues to contract sequentially after peaking in Q1 2022. In Q4 2022, Rakuten Mobile operating losses declined by 5.33% to  $ -114.43 billion yen from $-120.869 billion in Q3 2022. Rakuten Mobile also keeps seeing substantial growth in revenue. In Q4 2022, its revenue grew by 75.2% year-on-year to $114,430 million. The division now has 52,003 4G base stations, with 15% of  base stations left to be constructed. It aims to achieve 99%+ coverage before the end of 2023<ref name=":0">https://global.rakuten.com/corp/investors/documents/results/</ref>.
-In August 2021, Rakuten Group launched Rakuten Symphony, an organization aimed at spearheading global adoption of Open RAN architecture. In Germany, 1&1 is Rakuten Symphony's major client. At the end of financial year 2022, Rakuten Symphony had 14 clients. Five of the clients are from the Americas, two are in Asia/Pacific while seven are in Europe. Rakuten Symphony is also in the process of closing 8 major deals while 56 are in early stages of engagement. Its pipeline grew from $3.1 billion in Q3 2022 to $4.1 billion in Q4 2022 while its revenue was $476m, boosted by $231m in the fourth quarter alone.
+In August 2021, Rakuten Group launched Rakuten Symphony, an organization aimed at spearheading global adoption of Open RAN architecture<ref>https://global.rakuten.com/corp/news/press/2021/0804_04.html</ref>. In Germany, 1&1 is Rakuten Symphony's major client. At the end of financial year 2022, Rakuten Symphony had 14 clients. Five of the clients are from the Americas, two are in Asia/Pacific while seven are in Europe. Rakuten Symphony is also in the process of closing 8 major deals while 56 are in early stages of engagement. Its pipeline grew from $3.1 billion in Q3 2022 to $4.1 billion in Q4 2022 while its revenue was $476m, boosted by $231m in the fourth quarter alone<ref name=":0" />.
 Our major concern with Rakuten is that if its mobile division continues making losses, the group's financial position will be severely impacted. This will impact the construction of 1&1's network. Our asssesment is based on the current situation of its balance sheet and that of Bloomberg analysts. Due to the mobile losses and capex, Bloomberg Intelligence expected its non-financial segment cash burn to exceed 500 billion yen in 2022<ref>https://www.bloomberg.com/news/videos/2022-07-21/not-all-asia-telecom-bonds-are-safe-havens-in-stormy-2h-video</ref>. This could affect its credit rating, which is already on the downward trend. In December 2022, Rakuten's long-term credit rating was lowered to BB from BB+ by S&P Global Ratings<ref>https://www.bnnbloomberg.ca/japan-e-commerce-giant-rakuten-cut-further-into-junk-by-s-p-1.1862071</ref>. Bloomberg Intelligence Strategist Sharon Chen, believes that Rakuten needs to repair its balance sheet by Q4 2023 when $2.2 billion of bonds come due<ref>https://www.bloomberg.com/news/articles/2023-01-11/rakuten-more-than-doubles-bond-offering-s-size-to-450-million</ref>. However, we believe that even if the group were to go bankrupt, the business will be sold to another company or big investor who will see to it that the group's partnership obligations are honored.