LY Corporation

In today's briefing session, we have the participation of Mr. Takeshi Idezawa, President and Representative Director and CEO, Mr. Ryosuke Sakaue, Executive Corporate Officer and CFO, Mr. Yuki Ikehata, Executive Corporate Officer, Marketing Solutions Company CEO, And Mr. Makoto Hide, Executive Corporate Officer, Commerce Company CEO. First, Mr. Idezawa will explain the financial results for the second quarter of 2024. We will then conduct the Q&A session. This session is scheduled for one hour, and this session is also broadcast live. If there is a problem in the audio or video, please try another server from the bottom of the screen. We would like to start the session now. I'm Itazawa of Fine Yahoo Corporation. Thank you.

Thank you for taking the time to attend today's fiscal 2024 second quarter business results briefing. I will first provide a summary of the Q2 business results. Here's the highlight of the Q2 business results. First, I talk about business performance progress and revision of full-year guidance. Q2 results, entire group revenue was up 4.7%. percent YOY to 462.2 billion, and adjusted EBITDA was up 9.1 percent YOY to 112.6 billion yen. Both figures were record highs for the second quarter. And with this strong business results, guidance for adjusted EBITDA and adjusted EPS has been revised upwards. I will explain the details later. Second, group-wide issues are moving steadily toward resolution. It's expected that the company will meet the criteria for maintaining its listing on the prime market through share buyback and cancellation of treasury shares. Security measures are also progressing as planned. Third, product reinforcement. By enhancing official accounts and mini-apps, We will support DX and CX for companies and stores and reinforce monetization. And we'll increase commerce transaction values through line gift and line revamp. And we will accelerate the growth of financial business through service linkages with PayPay. Next page, please. I will explain in the order shown here. First, I'll explain the consolidated business results for the entire group. second quarter results shown here. Q2 results are progressing smoothly in line with guidance presented at the beginning of the fiscal year, and the progress rates have exceeded 50%. For the revenue, progress rate has not reached 50%, but the revenue will be larger in the second half, so this is within expectations. Fiscal 24 consolidated full-year guidance. Profit is progressing more smoothly than initially expected. As a result, we've revised upwards our full-year consolidated adjusted EBITDA forecast by 20 billion yen and adjusted EPS by 4.1 yen. And at the same time, we have also revised our adjusted EBITDA guidance for each segment. This is factors behind the revision of consolidated earnings guidance. Adjusted EBITDA is expected to grow more than initially planned in media business due to account ads and in the strategic business due to the consolidation of pay pay. Adjusted EPS is expected to improve mainly due to the improvement in adjusted EBITDA and the effect of stock buyback and cancellation of shares.

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