For the three months ended June 30, 2026, revenue increased by ¥156.1 billion (9.4%) year on year to ¥1,814.7 billion, marking a record high. All reportable segments posted higher revenue, with increases of ¥56.6 billion in the Distribution segment mainly due to solid growth in recurring revenue products and ICT related products for enterprise customers, ¥39.9 billion in the Media & EC segment mainly due to increases in commerce revenue and strategy revenue, ¥31.9 billion in the Consumer segment mainly due to increases in electricity revenue and revenues from sales of goods and others, ¥26.6 billion in the Enterprise segment mainly due to an increase in demand for solutions associated with digitalization, and ¥24.6 billion in the Financial segment mainly due to an increase in gross merchandise value of QR code payments and credit card services provided by PayPay Corporation and PayPay Card Corporation.
For the three months ended June 30, 2026, operating income increased by ¥11.6 billion (4.0%) year on year to ¥302.3 billion. Operating income decreased by ¥4.0 billion in the Media & EC segment mainly due to the absence of the remeasurement gain on step acquisition recorded in the same period of the previous year, and by ¥0.9 billion in the Consumer segment. On the other hand, operating income increased by ¥13.7 billion in the Financial segment, by ¥13.4 billion in the Enterprise segment, and by ¥1.0 billion in the Distribution segment.
For the three months ended June 30, 2026, net income attributable to owners of the Company increased by ¥4.8 billion (3.3%) year on year to ¥150.1 billion. This is mainly due to the aforementioned increase in operating income. Net income attributable to non-controlling interests increased by ¥14.4 billion (39.0%) year on year to ¥51.4 billion, mainly due to an increase in net income at the LY Group (LY Corporation and its subsidiaries), including PayPay Corporation.
In the three months ended June 30, 2026, adjusted free cash flow (excluding LY Group, PayPay, etc.) was negative ¥128.5 billion, a decrease of ¥214.9 billion year on year. Net cash inflow from operating activities was ¥100.4 billion, a decrease of ¥96.7 billion in cash inflow year on year. This mainly reflected an increase in EBITDA and a decrease in working capital such as trade receivables, payables, and inventories, while there were increases in financial assets in the banking and securities businesses and income taxes paid. Net cash outflow from investing activities was ¥378.0 billion, an increase of ¥33.3 billion in cash outflow year on year. This increase mainly reflected an increase in payments for acquisition of investments resulting from the acquisition of preferred equity interests in Energy Global, LP for USD 1.0 billion (approximately ¥160.0 billion), while there was an increase in proceeds from sales/redemption of investment securities in banking business.
Consumer segment revenue increased by ¥31.9 billion (4.4%) year on year to ¥749.7 billion. Mobile revenue increased by ¥3.0 billion (0.8%) year on year. This increase mainly reflected a rise in mobile ARPU due to increased penetration of the "PayToku" price plan under the "SoftBank" brand and revisions to price plans under the "Y!mobile" brand implemented in the previous fiscal year. Broadband revenue increased by ¥4.6 billion (4.4%) year on year. This increase was mainly because OpenFiber Japan Corp., a joint venture with Sony Network Communications Inc., was established and commenced operations. Electricity revenue increased by ¥14.2 billion (34.3%) year on year. This increase was mainly due to an increase in transactions in the electricity market. The increase in revenues from sales of goods and others was mainly due to an increase in average unit prices of mobile devices.
Operating expenses*2 were ¥596.8 billion, an increase of ¥32.8 billion (5.8%) year on year. This increase was mainly due to increases in the cost of electricity and amortization of capitalized sales commissions.
As a result, segment income decreased by ¥0.9 billion (0.6%) year on year to ¥152.9 billion.
Enterprise segment revenue increased by ¥26.6 billion (11.4%) year on year to ¥260.4 billion. Within Enterprise segment revenue, telecommunications revenue increased by ¥5.5 billion (4.4%) to ¥131.5 billion, solutions revenue increased by ¥2.8 billion (5.8%) to ¥51.8 billion, and cloud & AI revenue increased by ¥18.3 billion (31.0%) to ¥77.1 billion. The increase in telecommunications revenue was mainly due to increases in the number of mobile subscriptions and mobile device sales. The increase in solutions revenue was mainly due to an increase in system integration-related revenue, including sales of goods. The increase in cloud & AI revenue was mainly due to increased revenue from AI computing infrastructure and from cloud and security solutions as a result of capturing enterprise customers‘ demand for digitalization.
Operating expenses were ¥198.2 billion, an increase of ¥13.2 billion (7.1%) year on year. This increase was mainly due to an increase in costs following the abovementioned increases in cloud & AI revenue and solutions revenue.
As a result, segment income increased by ¥13.4 billion (27.5%) year on year to ¥62.2 billion.
Distribution segment revenue increased by ¥56.6 billion (22.8%) year on year to ¥304.5 billion. This increase was mainly due to solid growth in recurring revenue products such as cloud and SaaS and ICT related products for enterprise customers, which have been strategic areas of focus.
Operating expenses were ¥291.6 billion, an increase of ¥55.6 billion (23.6%) year on year. This increase was mainly due to an increase in cost of sales associated with the increase in revenue.
As a result, segment income increased by ¥1.0 billion (8.2%) year on year to ¥12.9 billion.
Media & EC segment revenue increased by ¥39.9 billion (9.8%) year on year to ¥446.8 billion. Within Media & EC segment revenue, media revenue increased by ¥4.8 billion (2.7%) to ¥180.8 billion, commerce revenue increased by ¥26.7 billion (12.4%) to ¥242.2 billion, strategy revenue increased by ¥8.5 billion (62.9%) to ¥22.0 billion, and other revenue decreased by ¥0.1 billion (5.5%) to ¥1.8 billion. The increase in media revenue mainly reflected an increase in revenue from account advertising, despite a decrease in revenue from search advertising. The increase in commerce revenue was mainly due to the consolidation of LINE MAN CORPORATION PTE. LTD. and BEENOS Inc., as well as an increase in transaction value of the ZOZO Group (ZOZO, Inc. and its subsidiaries). The increase in strategy revenue mainly reflected the consolidation of LINE Bank Taiwan Limited.
Operating expenses were ¥380.1 billion, an increase of ¥43.9 billion (13.1%) year on year. This increase mainly reflected the consolidation of LINE MAN CORPORATION PTE. LTD., LINE Bank Taiwan Limited, and BEENOS Inc., as well as the absence of the remeasurement gain on step acquisition associated with the capital increase in LINE Bank Taiwan Limited, which had been recorded in the same period of the previous year.
As a result, segment income decreased by ¥4.0 billion (5.7%) year on year to ¥66.7 billion.
Financial segment revenue increased by ¥24.6 billion (27.0%) year on year to ¥115.9 billion. This increase was mainly due to an increase in gross merchandise value of QR code payments and credit card services provided by PayPay Corporation and PayPay Card Corporation.
Operating expenses were ¥84.2 billion, an increase of ¥10.9 billion (14.9%) year on year. This increase was mainly due to an increase in sales promotion expenses related to point rewards, etc., due to the aforementioned increase in gross merchandise value of QR code payments and credit card services provided by PayPay Corporation and PayPay Card Corporation.
As a result, segment income increased by ¥13.7 billion (76.0%) year on year to ¥31.8 billion.
Business results and financial highlights of the Company in figures and graphs
Online presentation and materials on Earnings Results Briefing, Investor Meeting etc.
Latest and past financial reports