LY Corporation (TSE: 4689), the LINE Yahoo group that operates Japan's largest messaging app alongside its biggest web portal, reported consolidated results for the first quarter of the year to March 2027 under IFRS. Revenue rose 13.1% to ¥553,987 million — a first-quarter record — while operating profit gained 6.4% to ¥101,175 million. Profit before tax climbed 13.8% to ¥99,117 million, profit for the period jumped 24.9% to ¥75,387 million, and profit attributable to owners of the parent rose 19.2% to ¥58,060 million. Comprehensive income increased 11.3% to ¥84,397 million.
The metrics management steers by improved faster than the statutory figures. Adjusted EBITDA advanced 23.1% to ¥154,895 million, also a first-quarter record, adjusted profit surged 54.3% to ¥66,532 million, and adjusted earnings per share reached ¥9.70 against ¥6.05 a year earlier, up 60.3%. Basic EPS was ¥8.47 (from ¥6.84) and diluted EPS ¥8.44 (from ¥6.80).
Consolidations and PayPay drive the top line
Three acquisitions completed during the prior financial year — BEENOS Inc., LINE MAN CORPORATION PTE. LTD. in Thailand and LINE Bank Taiwan Limited — contributed for a full quarter for the first time. On top of that, consolidated PayPay revenue expanded within the Strategic segment, account advertising and the "LYP Premium" subscription lifted Media, and "Yahoo! Shopping" supported Commerce. Adjusted EBITDA grew even as selling, general and administrative expenses rose on higher sales-promotion costs, payment commissions and personnel expenses.
Segment performance
Media revenue edged up 2.6% to ¥182.0 billion with adjusted EBITDA up 14.2% to ¥76.1 billion. Account advertising grew revenue 13.3% year on year on a larger base of paid "LINE Official Accounts" and expanded usage-based billing, continuing its high growth rate. Display advertising declined for both programmatic and reserved products, and search advertising fell on both LINE Yahoo properties and partner sites. User billing and other revenue rose 12.5%, helped by "LYP Premium with Netflix" — launched in February 2026 and still popular — and steady growth in LYP Premium membership. Segment adjusted EBITDA benefited from the revenue increase plus lower SG&A, mainly personnel and generative-AI-related costs.
Commerce revenue rose 12.5% to ¥242.8 billion and adjusted EBITDA 10.2% to ¥42.0 billion, reflecting the consolidation of BEENOS and LINE MAN together with higher revenue at "Yahoo! Shopping" and the ZOZO group. Earnings grew as revenue expansion absorbed the higher sales-promotion, advertising and personnel costs carried by the newly consolidated businesses.
Strategic was the standout, with revenue up 34.9% to ¥130.2 billion and adjusted EBITDA up 64.4% to ¥35.0 billion. PayPay consolidated transaction value reached ¥5.5 trillion, 23.0% higher than a year earlier, and the PayPay Bank loan balance grew 37.5% to ¥1,334.8 billion. The June 2025 consolidation of LINE Bank Taiwan and the expansion of LINE Pay Taiwan added further momentum. The Other segment posted revenue of ¥1.9 billion (down 5.1%) and adjusted EBITDA of ¥1.3 billion (up 38.2%). Note that services were transferred between segments in a reorganisation and the cost-allocation basis for staff functions, data centres and internal infrastructure changed from this quarter; prior-year segment figures have been restated accordingly.
Balance sheet
Total assets stood at ¥11,612,455 million at June 30, 2026, up from ¥11,205,191 million three months earlier. Total equity was ¥3,723,854 million (from ¥3,713,509 million) and equity attributable to owners of the parent ¥3,004,765 million (from ¥2,998,805 million). The ratio of equity attributable to owners eased to 25.9% from 26.8% as the asset base expanded faster than equity.
Guidance and dividend left unchanged
Management kept its full-year FY3/2027 forecast intact: revenue of ¥2,240,000 million (+10.0%), adjusted EBITDA of ¥585,000 million (+17.8%) and adjusted EPS of ¥30.0. The dividend forecast is also unchanged at ¥11.00 per share for the full year, payable at year-end only with no interim distribution — a marked step up from the ¥7.30 paid for FY3/2026.
| Metric | Q1 FY3/2027 | Q1 FY3/2026 | YoY |
|---|---|---|---|
| Revenue (¥ billion) | 553.99 | 489.63 | +13.1% |
| Operating profit (¥ billion) | 101.18 | 95.07 | +6.4% |
| Adjusted EBITDA (¥ billion) | 154.90 | 125.86 | +23.1% |
| Profit attrib. to owners (¥ billion) | 58.06 | 48.72 | +19.2% |
| Adjusted profit (¥ billion) | 66.53 | 43.12 | +54.3% |
| Basic EPS (¥) | 8.47 | 6.84 | +23.8% |
| PayPay transaction value (¥ trillion) | 5.5 | 4.5 | +23.0% |
| FY27 adjusted EBITDA guidance (¥ billion) | 585.00 | 496.60 | +17.8% |
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.