LY Corp (YAHOF) Full Year 2025 Earnings Call Highlights: Strong Growth Amidst Strategic Challenges

GuruFocus News

Thu, May 8, 2025, 6:01 AM 3 min read

Release Date: May 07, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• LY Corp (YAHOF) reported a 13.5% year-on-year maturation successful adjusted EBITDA, indicating beardown fiscal performance.

• The institution announced a important stock repurchase program of up to CNY150 cardinal to amended superior efficiency.

• E-commerce transaction measurement grew by 5.1% year-on-year, with Yahoo Japan buying seeing a 6.7% increase.

• The strategical concern segment, including PayPay, showed important maturation with a 17.7% year-on-year summation successful revenue.

• LY Corp (YAHOF) is focusing connected transforming PayPay into a broad integer fiscal platform, which could thrust aboriginal growth.

• Revenue from commerce ads declined, indicating challenges successful that segment.

• The institution faces difficulties successful the hunt advertizing segment, with gross expected to beryllium level owed to lawsuit fund constraints.

• There is uncertainty regarding the monetization of AI initiatives, with important investments required without contiguous returns.

• The strategical concern segment's aboriginal projections are unclear, making it hard to measure semipermanent profitability.

• Security measures are expected to incur important costs, with a fund of CNY10 cardinal for fiscal '25.

• Warning! GuruFocus has detected 8 Warning Signs with YAHOF.

Q: Regarding the PayPay IPO, what are the expected benefits for LY Corp arsenic a shareholder, and however volition the IPO interaction PayPay's growth? A: (Unidentified_1) The PayPay IPO volition let america to recognize PayPay's firm value, which is simply a important advantage. The IPO volition besides bring marketplace discipline, improving absorption and accelerating growth. We are inactive studying the offering structure, and nary decisions person been made yet.

Q: Can you supply much details connected the gross guidance for each segment, peculiarly successful media and commerce? A: (Unidentified_1) In media, we expect precocious single-digit gross growth, with advertizing perchance increasing successful treble digits. Display ads are expected to turn successful debased azygous digits, portion hunt ads whitethorn look challenges. In commerce, we expect precocious single-digit gross growth, driven by the enlargement of our ecosystem.

Q: How does LY Corp program to monetize AI agents, and what relation volition idiosyncratic postulation and GMV maturation play successful this strategy? A: (Unidentified_1) We are exploring assorted monetization models for AI agents, including conversion models linked to GMV. Our unsocial presumption with a ample idiosyncratic basal and aggregate conversion points, specified arsenic commerce and travel, allows america to leverage these opportunities. We besides see integrating AI agents into our subscription services.