LY (4689) Q1 2025 earnings summary

Executive summary

• Revenue grew 7.6% year-over-year to JPY463.0B, with adjusted EBITDA up 21.7% to JPY121.7B, both record Q1 highs.

• Growth driven by PayPay in Strategic Business, ASKUL and ZOZO in Commerce, and account ads in Media.

• Net income attributable to owners rose 38.1% to JPY51.5B; basic EPS increased to JPY6.87.

• Share buyback of JPY150.0B announced to maintain Prime Market listing, enhance shareholder returns, and improve capital efficiency.

• Product and app enhancements, including Yahoo! JAPAN app redesign, aimed at driving top-line growth.

Financial highlights

• Operating income surged 79.8% YoY to JPY106.8B, 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% YoY to JPY177.6B; adjusted EBITDA up 14.2% to JPY69.6B.

• Commerce segment revenue up 5.8% YoY to JPY207.3B; adjusted EBITDA up 15.7% to JPY41.3B.

• Strategic segment revenue up 20.9% YoY to JPY79.1B; adjusted EBITDA up 1,384.7% to JPY6.0B.

Outlook and guidance

• On track to meet full-year guidance, with revenue and income growth across all segments.

• FY2025 revenue forecast at JPY1,935.0B, up 6.6% YoY; adjusted EBITDA expected at JPY430.0–440.0B.

• Adjusted EPS projected at JPY14.3–15.3 for the full year.

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