Q2 2025 LY Corp Earnings Call Transcript
Key Points
- LY Corp (YAHOF) reported record-high Q2 revenue of JPY462.2 billion, up 4.7% year-on-year, and adjusted EBITDA of JPY112.6 billion, up 9.1% year-on-year.
- The company revised its full-year guidance upwards for adjusted EBITDA by JPY20 billion and adjusted EPS by JPY4.1, indicating strong financial performance.
- The strategic business segment, particularly PayPay, showed significant growth with a 16.8% year-on-year increase in revenue, driven by strong GMV growth and improved profitability.
- LY Corp (YAHOF) is actively enhancing its product offerings, such as LINE Official Accounts and MINI Apps, to support digital transformation and customer experience for businesses.
- The company has implemented a share buyback program worth approximately JPY150 billion, which is expected to help maintain its listing on the prime market and improve shareholder returns.
- Despite the overall revenue growth, the commerce business was affected by the deconsolidation of subsidiaries, impacting revenue from certain segments.
- The display advertising revenue in the media business showed weakness, with expectations of flat to slightly negative growth in the second half of the fiscal year.
- LYP Premium membership numbers did not meet expectations, indicating challenges in attracting and retaining subscribers.
- The company faces challenges in the video platform space, lacking a strong presence in short-form video content, which is a growing trend in the market.
- There is volatility in the search ad revenue from partner sites, which poses a risk to consistent revenue generation in this segment.
In today's briefing session, we have the participation of Mr. Takeshi Idezawa, President and Representative Director and CEO; Mr. Ryosuke Sakaue, Executive Corporate Officer and CFO; Mr. Yuki Ikehata, Executive Corporate Officer, Marketing Solutions Company CEO; and Mr. Makoto Hide, Executive Corporate Officer Commerce Company CEO.
First, Mr. Idezawa will explain the financial results for the second quarter of 2024. We will then conduct a Q&A session. This session is scheduled for 1 hour. And this session is also broadcast live. If there is a problem in the audio or video, please try another server from the bottom of the screen.
We would like to start the session now.
I'm Idezawa of LINE Yahoo! Corporation. Thank you for taking the time to attend today's fiscal 2024 second quarter business results briefing. I will first provide a summary of the Q2 business results. Here is the highlight of the Q2 business results.
I'll first talk about
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