LINE Yahoo Corporation (TSE: 4689) reported consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) under IFRS. Revenue rose 6.2% year-on-year to a record ¥2,036,366 million, marking the sixth straight annual high. Operating profit climbed 8.3% to ¥341,322 million, pre-tax profit rose 7.0% to ¥294,231 million, and net profit jumped 39.9% to ¥283,090 million — outpacing the operating line because of a remeasurement gain on the LINE MAN business combination. Net profit attributable to owners rose 26.2% to ¥193,692 million, and basic EPS came in at ¥27.97 versus ¥21.00. Adjusted EBITDA reached ¥496,681 million (+5.5%) and adjusted EPS rose 15.3% to ¥28.73.
PayPay full consolidation transforms the Strategic segment
The growth engine was the Strategic segment, where revenue jumped 30.6% to ¥445.7 billion and adjusted EBITDA surged 85.0% to ¥93.9 billion. PayPay's consolidated payment volume reached ¥19.3 trillion, up 22.9% year-on-year, with PayPay Bank's loan balance climbing 33.6% to ¥1,238.6 billion. The segment also benefited from the June 17, 2025 consolidation of LINE Bank Taiwan Limited, while year-on-year EBITDA was further inflated by the absence of prior-year charges tied to the domestic LINE Pay wind-down. PayPay (Inc.) also fully consolidated PayPay Bank and PayPay Securities in April 2025, completing the integration of the group's payment-bank-brokerage stack.
Commerce hit by Askul ransomware; EBITDA falls 12.8%
The Commerce segment posted revenue of ¥857.6 billion (+1.1%) but adjusted EBITDA fell 12.8% to ¥129.9 billion. The October 2025 ransomware attack on subsidiary Askul caused a system outage that dragged on operating performance, even as the May 14, 2025 consolidation of BEENOS (cross-border e-commerce) and the September 30, 2025 consolidation of LINE MAN Corporation Pte. Ltd. lifted top-line revenue. The reversal of a prior-year gain from the loss of control of ValueCommerce also weighed on segment EBITDA. Consolidated e-commerce gross merchandise value (GMV) reached ¥4,672.9 billion (+7.1%), with domestic physical-goods GMV at ¥3,316.1 billion (+6.3%).
Media steady; account-ad revenue up 15.3%
The Media segment posted revenue of ¥735.1 billion (+0.4%) but adjusted EBITDA slipped 2.2% to ¥280.6 billion as promotional spending and generative-AI-related costs rose. Within the segment, account advertising (LINE Official Account) grew 15.3% on rising paid-account counts and usage-based billing, display advertising rose, and search advertising declined on both LINE Yahoo properties and partner sites. From April 2026, Yahoo!'s ad products are being rebranded as "LINE Yahoo Advertising" — search and display alike.
Balance sheet expands 22% on PayPay-bank consolidation
Total assets grew 22.3% to ¥11,205,191 million, primarily because PayPay Bank deposits and trust-segregated payment-services collateral are now consolidated. Equity rose to ¥3,713,509 million from ¥3,418,915 million, but the parent-owners' equity ratio eased to 26.8% from 32.7% as PayPay-bank liabilities grew faster than equity. Operating cash flow reached ¥662.9 billion (vs ¥519.6 billion), investing cash flow was -¥809.2 billion (vs -¥505.6 billion) reflecting M&A and bank-related investing, and financing cash flow turned positive at +¥153.3 billion. Period-end cash and equivalents stood at ¥1,068.0 billion.
FY27 guides 10% revenue growth and 18% adjusted EBITDA growth
For FY3/2027, management guides revenue of ¥2,240,000 million (+10.0%), adjusted EBITDA of ¥585,000 million (+17.8%), and adjusted EPS of ¥30.0 (+4.4%) — pointing to continued disciplined investment in growth areas. The FY3/2026 annual dividend was lifted to ¥7.30 per share (¥7.00 prior year), and management guides a further increase to ¥11.00 for FY3/2027, with the dividend on parent-owners' equity (DOE) holding at 1.7%. The payout ratio guide for FY3/2027 falls to 26.1% on the higher earnings base.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ billion) | 2,036.4 | 1,917.5 | +6.2% |
| Operating profit (¥ billion) | 341.3 | 315.0 | +8.3% |
| Adjusted EBITDA (¥ billion) | 496.7 | 470.8 | +5.5% |
| Net profit (¥ billion) | 283.1 | 202.4 | +39.9% |
| Net profit attrib. to owners (¥ billion) | 193.7 | 153.5 | +26.2% |
| Adjusted EPS (¥) | 28.73 | 24.91 | +15.3% |
| Basic EPS (¥) | 27.97 | 21.00 | +33.2% |
| Strategic segment adj. EBITDA (¥ billion) | 93.9 | 50.7 | +85.0% |
| PayPay payment volume (¥ trillion) | 19.3 | 15.7 | +22.9% |
| E-commerce GMV (¥ billion) | 4,672.9 | 4,363.9 | +7.1% |
| Annual dividend (¥) | 7.30 | 7.00 | +4.3% |
| FY27 revenue guidance (¥ billion) | 2,240.0 | — | +10.0% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.