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    Haruka Mori • JPMorgan Chase & Co.

    Haruka Mori's questions to LY Corp (YAHOY) leadership

    Haruka Mori's questions to LY Corp (YAHOY) leadership • Q1 2025

    Question

    Haruka Mori from JPMorgan Chase & Co. asked about the sustainability of the strong cost controls seen in Q1 and the expense outlook for the rest of the year, noting that profits are typically higher in the second half. She also questioned when the company expects to see a positive impact on advertising sales momentum from the recent revamps of the Yahoo! and LINE platforms.

    Answer

    Executive Ryosuke Sakaue stated that Q1's level of subcontracting cost control will be maintained, but SG&A will likely increase in the second half due to seasonal sales promotions, primarily for e-commerce and PayPay, while maintaining a focus on ROI. Executive Yuki Ikehata explained that the advertising revenue impact from the Yahoo! and LINE revamps is a medium-term measure, expected to materialize from the next fiscal year onward, not in the second half of the current year.

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    Haruka Mori's questions to LY Corp (YAHOY) leadership • Q4 2023

    Question

    Haruka Mori questioned the precision of the JPY 15 billion security cost estimate and its potential to increase. She also asked about the business impact of postponing the LINE-PayPay ID linkage and the strategy to achieve the FY'25 EPS target of JPY 20, including whether it assumes share buybacks.

    Answer

    Executive Ryosuke Sakaue stated that while they might accelerate security efforts, they do not expect a substantial increase beyond the JPY 15 billion estimate. He clarified the ID linkage delay has no immediate implication for a potential PayPay IPO. To reach the JPY 20 EPS target, the plan relies on strong EBITDA growth and eliminating JPY 15-20 billion in equity-accounted losses from affiliates by 2025, with no share buybacks currently assumed in the plan.

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