LY Corporation
4689・Prime Market・Information & Communication
Media Business
LY Corporation's core advertising business. A revenue pillar accounting for approximately 36% of total company revenue.
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (external revenue) | ¥729,339 million | ¥724,901 million | ↑ |
| Revenue (total including intersegment) | ¥735,197 million | ¥732,180 million | ↑ |
| Segment profit (operating profit) | ¥210,838 million | ¥218,970 million | ↓ |
| Depreciation and amortization | ¥31,012 million | ¥30,479 million | ↑ |
| Share of total company revenue (external revenue basis) | 35.8% | 37.8% | ↓ |
| Account Ads revenue year-on-year change | +15.3% | — | ↑ |
Business Details
An advertising platform business that provides search ads, account ads, and display ads to corporate clients, built on the Yahoo! JAPAN portal site and the LINE communication app. Account Ads centered on "LINE Official Account" drive high growth, while consumer-facing services such as LYP Premium and LINE Stickers are also offered. Under the Connect One concept, the business aims to evolve beyond advertising products into a corporate marketing platform.
Recent Overview
Revenue grew slightly, but segment profit declined due to increased promotional expenses and generative AI-related costs.
Media Business revenue for the full year of FY2026 (ending March 2026) was ¥729,339 million (up 0.4% year-on-year), a modest increase. Account Ads continued high growth of 15.3% year-on-year, driven by an increase in paid accounts and expansion of usage-based billing, and Display Ads also grew, while Search Ads declined in both LY (LINE Yahoo) properties and partner site properties. Segment profit was ¥210,838 million (down 3.7% year-on-year) due to increases in promotional expenses and generative AI-related costs, among others. As of the end of March 2026, the company completed system separation and private network separation from NAVER Corporation and others, completing the main measures to prevent recurrence of the information leak.
Key Products
Growth Drivers
- Continued high growth in Account Ads driven by an increase in paid LINE Official Account accounts and expansion of usage-based billing (up 15.3% year-on-year for the full year of FY2026 (ending March 2026))
- Promotion of an integrated platform for LY Corporation's corporate services under the Connect One concept (strengthening integration of reservations, orders, payments, and membership registration through LINE Mini Apps)
- Improved user engagement through promotion of cross-use of group services via LYP Premium
- Continued expansion of the internet advertising market (Japan's internet advertising expenditure in 2025 was ¥4,045.9 billion, up 10.8% year-on-year)
- Expansion of the display advertising market driven by high growth in video ads (up 21.8% year-on-year), centered on vertical video ads on social media
Risks
- Downward pressure on adjusted EBITDA and segment profit from increased generative AI-related costs and promotional expenses (full-year FY2026 (ending March 2026) segment profit down 3.7% year-on-year)
- Continued revenue decline trend in Search Ads across both LY (LINE Yahoo) properties and partner site properties
- Risk to brand trust related to the Ministry of Internal Affairs and Communications' administrative guidance and Personal Information Protection Commission recommendation regarding the November 2023 unauthorized access information leak (main recurrence prevention measures completed as of the end of March 2026)
- Intensifying competition due to aggressive rollout of AI-powered services by competitors
- Decline in Media Business's share of total company revenue (relative share shrinking due to rapid growth of the Strategic Business)
Last updated: June 18, 2026