LY Corp Raises FY24 Outlook as PayPay Growth Drives Profit

Tokyo, Japan - LY Corporation (4689.T) raised its annual profit forecast after reporting its highest-ever second-quarter results, driven by solid performance in its PayPay payment business and media operations.

The company lifted its fiscal 2024 adjusted EBITDA forecast to JPY450-460 billion (US$2.91-2.98 billion) from JPY430-440 billion, citing better-than-expected growth across its core businesses.

Second-quarter adjusted EBITDA rose 9.1% year-on-year to JPY112.6 billion (US$729 million), while revenue increased 4.7% to JPY462.2 billion (US$2.99 billion). Adjusted earnings per share declined 28.1% to JPY5.49.

The media segment, which includes advertising services, saw revenue grow 4.2% to JPY181.7 billion (US$1.18 billion), supported by growth in account advertising with paid accounts reaching 419,000.

The strategic business unit, including  PayPay digital payments, recorded the most robust growth, with revenue has rose 16.8% to JPY81.2 billion (US$526 million). 

PayPay's standalone gross merchandise value reached JPY3.7 trillion (US$23.95 billion), up 23.8% from the previous year, while registered users increased to 65.72 million.

LY Corporation completed a share buyback program, acquiring 386.6 million shares for approximately JPY150 billion (US$971 million), representing 5.06% of outstanding shares. Subsequently, the company canceled 489.6 million treasury shares, improving its tradable share ratio to an expected 36.5%.

The company maintained its fiscal 2024 revenue guidance of approximately JPY1.93 trillion (US$12.49 billion), representing a 7% year-on-year increase. 

Commerce segment revenue rose 1.2% to JPY200.5 billion (US$1.30 billion), with the travel business growing 22.3% year-on-year despite headwinds in the shopping business from regulatory changes in hometown tax reform.

PayPay Card's transaction volume reached JPY4.72 trillion (US$30.56 billion), marking a 30% increase from the previous year as the company continues integrating its payment services.

(US$1 = JPY154.46)