LY Corp Reports Q1 Growth, Announces $1.03B Share Buyback

Philip Lee -

Tokyo, Japan - LY Corporation (4689.T) reported a 7.6% year-on-year increase in first-quarter revenue to JP¥ 463 billion (US$3.19 billion), driven by growth in its advertising and payment businesses.

The company, which operates LINE, Yahoo Japan, and the PayPay mobile payments service, saw its adjusted EBITDA rise 21.7% to JP¥ 121.7 billion (US$838 million) for the quarter that ended June 30.

LY Corp announced plans to repurchase JP¥150 billion (US$1.03 billion) worth of its shares through a tender offer to maintain its listing on the Tokyo Stock Exchange's Prime Market and boost shareholder returns.

Key performance metrics:

  • Media segment revenue grew 4.4% to JP¥ 177.6 billion (US$1.22 billion)
  • Commerce segment revenue increased 5.8% to JP¥ 207.3 billion (US$1.43 billion)
  • Strategic business revenue, which includes fintech services, jumped 20.9% to JP¥ 79.1 billion (US $544 million)

The company's PayPay business reported its first quarterly operating profit, with consolidated revenue growing 18.8% year-on-year to JP¥56.9 billion (US$392 million).

LY Corp's adjusted earnings per share fell 25.6 percent to JP¥3.58 ($0.025), which the company attributed to one-off factors.

The firm cited the ongoing implementation of security measures following recent data breaches at its subsidiaries.

It maintained its full-year guidance, with first-quarter results representing 23.9 percent progress toward its annual revenue target.