LY (4689) Q2 2025 earnings summary

Executive summary

• Q2 FY2024 revenue reached ¥462.2 billion, up 4.7% year-over-year, and adjusted EBITDA was ¥112.6 billion, up 9.1%, both record highs for the quarter.

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

• Full-year guidance for adjusted EBITDA (+¥20 billion) and adjusted EPS (+¥4.1) was raised due to strong profit progress, especially in Media and Strategic segments.

• Share buyback of approximately ¥150 billion completed, with 6.4% of shares canceled, supporting Prime Market listing criteria.

• Strategic focus on enhancing official accounts, mini apps, LINE commerce, and PayPay finance to drive future growth.

Financial highlights

• Group revenue up 4.7% year-over-year in Q2; adjusted EBITDA up 9.1% year-over-year.

• Operating income for the six months increased 48.7% year-over-year to ¥172.7 billion.

• Media business revenue up 4.2% year-over-year, with account advertising growing 18%.

• Commerce business saw growth in shopping and travel, with travel up over 20% year-over-year; Yahoo! Shopping up 8% year-over-year excluding tax system impact.

• Strategic business revenue up 16.8% year-over-year to ¥81.2 billion in Q2, driven by PayPay consolidation.

Outlook and guidance

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

• Revenue guidance remains at approximately ¥1.93 trillion (+6.6–7% year-over-year).

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

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

• Commerce business aims for 5–10% growth in GMV for the second half, with disciplined marketing investment.