LY (4689) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue rose 12.3% YoY to ¥1,117.7bn and adjusted EBITDA increased 22.0% to ¥306.5bn, both records for a cumulative second quarter.

• Q2 revenue grew 11.5% YoY and adjusted EBITDA rose 20.9%; structural profitability gains were attributed to portfolio transformation, AI-driven efficiency and fixed-cost reductions.

• GAAP operating income fell 7.3% and net income attributable to owners declined 32.8%; adjusted net income rose 10.9% to ¥118.6bn.

Financial highlights

• H1 revenue increased ¥122.3bn YoY to ¥1,117.7bn; adjusted EBITDA increased ¥55.2bn to ¥306.5bn.

• Operating income was ¥198.9bn, down 7.3% YoY; profit before tax was ¥175.9bn, down 7.8%.

• Adjusted EPS was ¥17.29, up 13.1% YoY, while basic EPS was ¥13.54, down 31.5%.

• Consolidated PayPay adjusted EBITDA rose ¥14.2bn; LY operations’ adjusted EBITDA increased ¥10.4bn.

Outlook and guidance

• FY2027 revenue forecast was raised 4.0% to ¥2,330bn; adjusted EBITDA forecast rose 9.4% to ¥640bn and adjusted EPS to ¥35.

• Commerce revenue guidance rose by ¥130bn to ¥1.06tn; commerce adjusted EBITDA guidance increased by ¥16bn, with 33.6% YoY growth forecast.

• Strategic business adjusted EBITDA is forecast at ¥160bn, up 69.1%; management indicated sustainable adjusted EBITDA growth of at least 10% next fiscal year.

• Annual dividend guidance rose from ¥11 to ¥12 per share.