PayPay Powers LY Corp's First Quarter as it Prepares for IPO

LY Corporation's revenue for the cumulative consolidated first quarter of the fiscal year ending March 31, 2026 amounted to 489.6 billion yen (up 5.7% year on year), representing the highest cumulative consolidated first quarter revenue to date. This was due to an increased revenue in the Strategic Business accompanied by the growth in PayPay consolidated, increased revenue in the Commerce Business accompanied by factors including the favorable performance of the ASKUL Group and ZOZO Group, among others, as well as increased revenue in the Media Business driven by the growth of account advertising.

Adjusted EBITDA for the cumulative consolidated first quarter of the fiscal year ending March 31, 2026 amounted to 125.8 billion yen (up 3.4% year on year), representing the highest cumulative consolidated first quarter earnings to date. This was mainly due to the increased revenues mentioned above, despite the absence of increased income as a result of a gain on loss of control of subsidiary (cash transaction) recorded in the same period of the previous fiscal year, and an increase in sales promotion expenses.

In addition, operating income for the cumulative consolidated first quarter of the fiscal year ending March 31, 2026 amounted to 95.0 billion yen (down 11.0% year on year), mainly due to the recognition of a gain on loss of control of subsidiary (non-cash transaction) during the same period of the previous fiscal year.