Fiscal Year Ending March 2026 Financial Summary [IFRS] (Consolidated)

Performance Overview

The consolidated revenue for the fiscal year ending March 2026 was JPY 2.036 trillion (up 6.2% YoY), and adjusted EBITDA was JPY 496.6 billion (up 5.5% YoY), achieving a sixth consecutive record high. Operating income increased to JPY 341.3 billion (up 8.3% YoY), and net income rose to JPY 283.0 billion (up 39.9% YoY). The primary factors for the revenue growth include the continued expansion of PayPay consolidation and the growth of the commerce business.

Segment Performance

The Media segment posted revenue of JPY 735.1 billion (up 0.4% YoY) and adjusted EBITDA of JPY 280.6 billion (down 2.2% YoY). The Commerce segment recorded revenue of JPY 857.6 billion (up 1.1% YoY) and adjusted EBITDA of JPY 129.9 billion (down 12.8% YoY). The Strategic segment saw revenue of JPY 445.7 billion (up 30.6% YoY) and adjusted EBITDA of JPY 93.9 billion (up 85.0% YoY). The significant increase in the Strategic segment contributed to the overall improvement in profitability.

Financial Position and Cash Flows

Total assets amounted to JPY 11.2051 trillion (up 22.3% YoY), and total liabilities were JPY 7.4917 trillion (up 30.5% YoY). Cash flows from operating activities were JPY 662.8 billion (an increase YoY), investing activities used JPY 809.2 billion, and financing activities generated JPY 153.3 billion.

Dividends and Future Outlook

The year-end dividend for FY2026 is planned at JPY 7.30 per share, with an aggregate dividend of JPY 50.2 billion. For FY2027, an interim dividend of JPY 11.00 per share (up from the previous year) is expected. The company will shift to a dividend policy linked to profit growth, aiming to improve capital efficiency while balancing growth investments and shareholder returns.

Medium- to Long-term Management Strategy

Our group aims for sustainable growth by leveraging digital technology, expanding services in the media, commerce, and strategic business segments. Strengthening the revenue base through growth of PayPay consolidation and the incorporation of LINE Bank Taiwan Limited is ongoing. We will continue to promote AI utilization and platform enhancement to enhance enterprise value.

Changes in Consolidated Scope

In FY2026, five companies, including BEENOS Inc., LINE Bank Taiwan Limited, and LINE MAN CORPORATION PTE. LTD., were newly consolidated, while Z Financial Inc. was excluded, impacting performance.

Status of Shares Outstanding

As of the end of FY2026, the shares outstanding were 6,884,244,856 shares (compared to 7,154,182,647 shares at the same period last year), and treasury stock was 25,635,999 shares (down from 28,775,073 shares).