For the six months ended September 30, 2025, revenue increased by ¥248.8 billion (7.9%) year on year to ¥3,400.8 billion, marking a record high. All reportable segments posted higher revenue, with increases of ¥75.1 billion in the Distribution segment mainly due to solid increase in revenue from ICT related products for enterprise customers and recurring revenue products, ¥48.8 billion in the Consumer segment mainly due to increases in revenues from sales of goods and others, ¥37.1 billion in the Financial segment mainly due to an increase in gross merchandise value of QR code payments and credit card services conducted by PayPay Corporation and PayPay Card Corporation, ¥36.1 billion in the Enterprise segment mainly due to an increase in demand for solutions associated with digitalization, and ¥32.8 billion in the Media & EC segment mainly due to increased commerce revenue. The progress rate against the consolidated financial result forecast for the fiscal year ending March 31, 2026 is 50.8%, indicating steady progress.
For the six months ended September 30, 2025, operating income increased by ¥43.0 billion (7.3%) year on year to ¥628.9 billion, marking a record high. All reportable segments posted higher operating income, with increases of ¥20.7 billion in the Financial segment, ¥19.2 billion in the Media & EC segment, ¥9.6 billion in the Enterprise segment, ¥8.9 billion in the Consumer segment, and ¥5.8 billion in the Distribution segment. The progress rate against the consolidated financial result forecast for the fiscal year ending March 31, 2026 is 62.9%, indicating steady progress.
For the six months ended September 30, 2025, net income attributable to owners of the Company increased by ¥24.9 billion (7.7%) year on year to ¥348.8 billion, marking a record high. This is mainly due to the aforementioned increase in operating income, a decrease in income tax, and the absence of the negative impact of the loss on valuation of put options for equity method associates recorded in the same period of the previous year. The decrease in income tax is mainly due to the additional recording of deferred tax assets associated with the reassessment of the recoverability of deferred tax assets at PayPay Corporation, while there was an absence of the deferred tax impact from business restructuring of associates recorded in the same period of the previous year. Net income attributable to non-controlling interests increased by ¥57.0 billion (81.5%) year on year to ¥127.0 billion, mainly due to an increase in net income at the LY Group (LY Corporation and its subsidiaries), including PayPay Corporation. The progress rate against the consolidated financial result forecast for the fiscal year ending March 31, 2026 is 64.6%, indicating steady progress.
In the six months ended September 30, 2025, primary free cash flow was positive ¥360.1 billion, an increase of ¥4.9 billion year on year. Net cash inflow from operating activities was ¥574.5 billion, a decrease of ¥134.4 billion in cash inflow year on year. This decrease mainly reflected an increase in necessary working capital such as trade receivables, payables, and inventories, as well as a decrease in income taxes refunded, while there were increases in EBITDA and deposits for banking business. Net cash outflow from investing activities was ¥600.5 billion, an increase of ¥97.9 billion in cash outflow year on year. This increase mainly reflected an increase in payments for acquisition of investment securities in banking business and an increase in payments for obtaining control of subsidiaries, while there was a decrease in purchases of property, plant and equipment and intangible assets. Cash flows from investing activities include an expenditure of ¥10.6 billion related to long-term growth investments.
Consumer segment revenue increased by ¥48.8 billion (3.4%) year on year to ¥1,475.7 billion. Mobile revenue increased by ¥9.6 billion (1.2%) year on year. This increase mainly reflected growth in smartphone subscribers, led primarily by the Y!mobile brand, amid a stable trend in average revenue per user. Broadband revenue increased by ¥5.2 billion (2.6%) year on year. This increase was mainly due to an increase in subscribers of the SoftBank Hikari fiber-optic service*3. Electricity revenue decreased by ¥20.4 billion (16.4%) year on year. This decrease was mainly due to a decrease in transactions in the electricity market. Revenues from sales of goods and others increased by ¥54.4 billion (17.5%) year on year. This increase was mainly due to an increase in unit prices as well as the number of mobile devices sold.
Operating expenses*4 were ¥1,144.8 billion, an increase of ¥39.9 billion (3.6%) year on year. This increase was mainly due to increases in the cost of goods of smartphones, etc., and promotion expenses, while there was a decrease in the cost of electricity.
As a result, segment income increased by ¥8.9 billion (2.7%) year on year to ¥330.9 billion.
Enterprise segment revenue increased by ¥36.1 billion (8.1%) year on year to ¥482.0 billion. Within Enterprise segment revenue, mobile revenue increased by ¥11.7 billion (7.5%) to ¥167.8 billion, fixed-line revenue decreased by ¥1.1 billion (1.3%) to ¥83.8 billion, and business solution and others revenue increased by ¥25.5 billion (12.5%) to ¥230.4 billion. The increase in mobile revenue was mainly due to increases in telecommunications revenue from a growth in the number of mobile service subscribers, as well as an increase in mobile device sales. The decrease in fixed-line revenue was mainly due to a decrease in the number of telephone service subscribers. The increase in business solution and others revenue was mainly due to increased revenue mainly from cloud and security solutions as a result of capturing enterprise customers' demand for digitalization.
Operating expenses were ¥377.9 billion, an increase of ¥26.5 billion (7.5%) year on year. This increase was mainly due to an increase in costs following the abovementioned increase in business solution and others revenue.
As a result, segment income increased by ¥9.6 billion (10.2%) year on year to ¥104.1 billion.
Distribution segment revenue increased by ¥75.1 billion (17.4%) year on year to ¥505.8 billion. This increase was mainly due to solid growth in ICT related products for enterprise customers and recurring revenue products such as cloud and SaaS, which have been strategic areas of focus, as well as increased sales of PCs due to GIGA School Program Phase 2 and migration from Windows 10, which is reaching the end of its support.
Operating expenses were ¥483.8 billion, an increase of ¥69.4 billion (16.7%) 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 ¥5.8 billion (35.5%) year on year to ¥22.0 billion.
Media & EC segment revenue increased by ¥32.8 billion (4.2%) year on year to ¥822.8 billion. Within Media & EC segment revenue, media revenue increased by ¥0.9 billion (0.3%) to ¥354.1 billion, commerce revenue increased by ¥21.8 billion (5.3%) to ¥431.5 billion, strategy revenue increased by ¥8.1 billion (33.3%) to ¥32.5 billion, and other revenue increased by ¥2.0 billion (71.8%) to ¥4.7 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 an increase in transaction value of the ASKUL Group (ASKUL Corporation and its subsidiaries) and the ZOZO Group (ZOZO, Inc. and its subsidiaries), the consolidation of BEENOS Inc., as well as a strong performance by service e-commerce, which handles travel and restaurant booking. The increase in strategy revenue mainly reflected the consolidation of LINE Bank Taiwan Limited and an increase in revenue in the FinTech field.
Operating expenses were ¥655.3 billion, an increase of ¥13.5 billion (2.1%) year on year. This increase mainly reflected the absence of gain on loss of control over subsidiaries for IPX Corporation, LINE NEXT Corporation, and ValueCommerce Co., Ltd., which had been recorded in the same period of the previous year, an increase in sales promotion expenses, and the consolidation of BEENOS Inc. and LINE Bank Taiwan Limited, while recognizing remeasurement gain on step acquisitions of LINE MAN CORPORATION PTE. LTD. and LINE Bank Taiwan Limited.
As a result, segment income increased by ¥19.2 billion (13.0%) year on year to ¥167.5 billion.
Financial segment revenue increased by ¥37.1 billion (24.3%) year on year to ¥189.7 billion. This increase was mainly due to an increase in gross merchandise value of QR code payments and credit card services conducted by PayPay Corporation and PayPay Card Corporation.
Operating expenses were ¥151.2 billion, an increase of ¥16.4 billion (12.2%) 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 conducted by PayPay Corporation and PayPay Card Corporation.
As a result, segment income increased by ¥20.7 billion (116.2%) year on year to ¥38.5 billion.
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