LY (4689) Q2 2025 earnings summary

Executive summary

• Q2 2024 revenue rose 4.7% year-over-year to ¥462.2 billion, and adjusted EBITDA increased 9.1% to ¥112.6 billion, both record highs for the second quarter.

• Revenue for the six months ended September 30, 2024, reached ¥925.2 billion, up 6.1% year-over-year, with adjusted EBITDA at ¥234.4 billion, up 15.3% year-over-year, both record highs for the period.

• Upward revisions were made to full-year guidance for adjusted EBITDA (to ¥450.0–460.0 billion) and adjusted EPS (to ¥18.5–19.4), reflecting strong business performance, especially in Media and Strategic segments.

• Share buybacks and cancellation of treasury shares are progressing, supporting Prime Market listing criteria.

• Security measures are on track, with costs expected to remain within the initial forecast.

Financial highlights

• Group revenue grew 4.7% year-over-year in Q2; adjusted EBITDA up 9.1% year-over-year; six-month operating income increased 48.7% to ¥172.7 billion.

• Net income attributable to owners of the parent was ¥87.3 billion, down 6.9% year-over-year; adjusted net income was ¥67.9 billion, down 27.2%.

• Share buyback of approximately ¥150 billion completed, with 6.4% of shares canceled.

• Cumulative total payout ratio over the past five years was about 70–74%.

• Adjusted EBITDA margin remained strong at 23.1% in Q2 and 25.3% for the six months.

Outlook and guidance

• Full-year revenue forecast remains at ¥1,935.0 billion, up 6.6% year-over-year.

• Adjusted EBITDA guidance raised to ¥450.0–460.0 billion (up 8.5–10.9% year-over-year); adjusted EPS guidance revised upward to ¥18.5–19.4.

• Revenue is expected to be higher in the second half, in line with historical trends.

• Cumulative payout ratio target of over 70% maintained for the next five years.

• Media business revenue growth in the second half expected in the lower single-digit percentage range; search ads to maintain high teens growth, display ads to remain flat or slightly negative.