Q1 2026 LY Corp Earnings Call Transcript
Key Points
- LY Corp (YAHOF) achieved record highs in revenue and adjusted EBITDA for the first quarter.
- The company is advancing mid- to long-term growth initiatives, including the LINE revamp and AI feature rollouts.
- Commerce ad revenue continues to grow at double-digit rates, driven by increased transaction value.
- The company executed significant share repurchases and cancellations, enhancing shareholder returns.
- PayPay's revenue increased by 22.1% year on year, with adjusted EBITDA surpassing JPY20 billion for the first time in a quarter.
- Search advertising revenue decreased due to a slowdown in ad placements from some advertisers.
- SG&A expenses increased, impacting the adjusted EBITDA margin in the Media Business.
- The integration of advertising platforms and development of AI infrastructure led to higher costs.
- The company faces challenges in maintaining demand for search ads, with expectations of continued sluggishness.
- Operating profit in the Commerce Business decreased due to higher SG&A expenses and the impact of one-time gains from the previous fiscal year.
(audio in progress) LY Corporation fiscal '25 (sic - "fiscal '26") first-quarter earnings briefing. Thank you very much for taking the time to join us today.
In this session, we will use the earnings presentation materials available on the LY Corporation website. Joining us today from LY Corporation are President, Representative Director, and CEO, Takeshi Idezawa; Executive Corporate Officer and CFO, Ryosuke Sakaue; Executive Corporate Officer and Corporate Business Company CEO, Yuki Ikehata; Executive Corporate Officer and Commerce Company CEO, Makoto Hide. These are the officers attending today.
First, Sakaue will explain the earnings results for the first quarter of fiscal '25. This will be followed by a Q&A session. Today's session is scheduled to last approximately 1 hour.
This session is being live streamed. If you experience technical difficulties such as disrupted audio or video, please try switching to an alternate server from the link at the bottom of the screen.
Let us now begin the presentation.
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