LY Corporation, the Japanese internet conglomerate behind LINE and Yahoo Japan, reported second-quarter revenue of ¥505.7 billion ($3.28 billion) for the period ended September 2025, marking a 9.4% increase from the prior year. Adjusted EBITDA climbed 11.3% to ¥125.4 billion ($814 million), delivering an improved margin of 24.8%.
The results masked underlying weakness in the company’s core media business, where revenue slipped 0.3% as search advertising declined ¥6.5 billion year-over-year. The shortfall reflected client budget reductions and competitive pressures in digital advertising. Account advertising through LINE Official Accounts partially offset the decline, rising 16.1% to ¥35.0 billion.
PayPay’s consolidated operations drove much of the growth, with revenue surging 28.4% and generating double-digit EBITDA growth. The payment platform now serves 71 million registered users and processes ¥4.7 trillion in quarterly transactions.
Management raised the annual dividend forecast to ¥7.3 per share from ¥7.0, citing a recent share buyback that reduced the dividend base. The company completed a ¥32.2 billion repurchase program in August, canceling all 63.4 million shares acquired.
LY’s strategic pivot toward AI agents and LINE Mini Apps targets doubling Official Accounts revenue to ¥280 billion by fiscal 2028, though execution risks remain as the company reallocates resources and pursues ¥15 billion in fixed-cost reductions.
