Q3 2026 LY Corp Earnings Call Transcript
Key Points
- Excluding the impact of ASKUL, LY Corp (YAHOF) reported double-digit year-on-year increases in both revenue and profit for the third quarter.
- The Commerce and Strategic businesses drove revenue growth, with the Commerce segment seeing a 31% year-over-year increase in revenue excluding ASKUL.
- The Media segment showed signs of recovery, with revenue achieving slight positive growth year-on-year and margins increasing due to changes in the revenue mix.
- The Strategic business segment experienced a 30% year-on-year revenue increase, with significant growth in adjusted EBITDA and margin expansion.
- LY Corp (YAHOF) is targeting a 10% to 15% increase in adjusted EBITDA for fiscal '26, driven by business growth and cost reductions.
- The company experienced a system outage at its subsidiary ASKUL due to a ransomware attack, impacting overall financial results.
- Consolidated revenue declined by 0.7% year-on-year, and adjusted EBITDA was down 2.3% year-on-year when including ASKUL.
- Search advertising revenue declined by 9.5% year-on-year, impacting the Media segment's overall performance.
- SG&A expenses increased due to higher sales promotion and Gen AI-related costs, affecting profitability.
- The ASKUL system outage is projected to impact fiscal '25 revenue and adjusted EBITDA, with uncertainties remaining around its recovery.
We'll now begin the LY Corporation fiscal '25 third-quarter financial results briefing. Thank you very much for joining us today.
In this briefing, we will use the financial results briefing presentation materials available on the LY Corporation website. Today's briefing is attended by the following members of LY Corporation: Representative Director, President, and CEO, Takeshi Idezawa; Senior Executive Officer and CFO, Ryosuke Sakaue; Senior Executive Officer, Media and Search Domain, Domain Lead, Hiroshi Kataoka; Senior Executive Officer, Commerce Domain, Domain Lead, Makoto Hide; Senior Executive Officer, Corporate Business Domain, Domain Lead, Yuki Ikehata.
First, Sakaue will provide an overview of the fiscal '25 third-quarter financial results. After that, we will have a question-and-answer session. The entire briefing is scheduled to last about 1 hour.
This briefing is being live streamed. If you experience any audio or video issues during viewing, please use the link displayed at the bottom of the screen and move to another server. Now let us begin.
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