LY (4689) investor relations material

Executive summary

• Consolidated revenue reached JPY 553.9 billion, up 13.1% year-on-year, with adjusted EBITDA rising 23.1% to JPY 154.8 billion, both record highs.

• Adjusted EPS rose 60.3% year-on-year to JPY 9.70.

• Agent i's daily active users expanded to 12 million, with domain agents now covering 25 domains.

• Growth was driven by consolidation of BEENOS, LINE MAN, LINE Bank Taiwan, and strong performances in PayPay, account advertising, LYP Premium, and Yahoo! JAPAN Shopping.

• Announced a tender offer for Kakaku.com, aiming for synergies in user touchpoints, data, and payment platforms, with Bain Capital as a partner.

Financial highlights

• Revenue grew 13.1% year-on-year to JPY 553.9 billion; adjusted EBITDA up 23.1% to JPY 154.8 billion; adjusted EPS up 60.3% to JPY 9.70.

• Margin improved to 28%, reflecting higher profitability.

• PayPay consolidation and LY Corporation contributed to profit expansion.

• Media segment revenue up 2.6% year-on-year to JPY 182.0 billion; commerce up 12.5% to JPY 242.8 billion; strategic businesses up 34.9% to JPY 130.2 billion.

• PayPay registered users exceeded 74.56 million, with GMV up 23% year-on-year and EBITDA up 59.1%.

Outlook and guidance

• Full-year guidance is on track, with confidence to surpass targets; revenue at 24.7% and adjusted EBITDA at 26.5% of annual targets.

• FY2026 revenue forecast is JPY 2,240.0 billion, up 10.0% year-on-year; adjusted EBITDA projected at JPY 585.0 billion, up 17.8%.

• Adjusted EPS expected to reach JPY 30.0, a 4.4% increase.

• Media and strategic revenue expected to concentrate in the second half due to seasonality.

• SG&A expenses expected to normalize from Q2, with profit growth moderating but guidance still achievable.