LY (4689) Q1 2025 earnings summary

Executive summary

• Revenue grew 7.6% year-on-year to ¥463.1 billion, with adjusted EBITDA up 21.7% to ¥121.7 billion, both record Q1 highs, driven by account advertising, PayPay, ASKUL, and ZOZO.

• Net income attributable to owners rose 38.1% to ¥51.5 billion; basic EPS increased to ¥6.87.

• A JPY 150 billion share buyback was announced to maintain Prime Market listing, improve EPS and ROE, and enhance shareholder returns.

• Product enhancements included a revamp of the Yahoo! JAPAN app and strengthened media capabilities.

Financial highlights

• Operating income surged 79.8% year-on-year to ¥106.8 billion, aided by gains on loss of control of subsidiaries.

• Adjusted EPS was JPY3.58, down 25.6% YoY, but core performance value excluding one-time items improved 104.8% YoY.

• Media segment revenue up 4.4% to ¥177.6 billion; adjusted EBITDA up 14.2% to ¥69.6 billion.

• Commerce segment revenue up 5.8% to ¥207.3 billion; adjusted EBITDA up 15.7% to ¥41.3 billion.

• Strategic segment revenue up 20.9% to ¥79.1 billion; adjusted EBITDA up 1,384.7% to ¥6.0 billion.

Outlook and guidance

• FY2025 revenue forecast at ¥1,935.0 billion, up 6.6% year-over-year; adjusted EBITDA expected at ¥430.0–440.0 billion, up 3.6–6.0%.

• Adjusted EPS projected at ¥14.3–15.3 for the full year.

• Share buyback expected to improve adjusted EPS by JPY0.4 for FY2024.

• Revenue progress is below 25% of annual target, but higher sales are expected in the second half due to seasonality.

• No major one-time items expected for the remainder of the year; any significant items will be disclosed.