Security Code: 4689
Z Holdings Corporation Business Results
FY2021 Q2
November 2, 2021
FY2021 Q2 Financial Results - Topics
Revenue: JPY377.6 B (YoY +33.3%)
Adjusted EBITDA: JPY100.8 B (YoY +35.4%)
Both achieved record highs for the second quarter due to integration effects, steady PMI progress, etc.
• | Group total advertising revenue: JPY139.9 B (YoY +67.0%) due to recovery in demand for digital | |
Consolidated Results | advertising | |
• | LINE achieved a consolidated operating profit for the fourth consecutive quarter, due to growth | |
in advertising business | ||
• | Expect a cost synergy of around JPY10 B for FY21 from decrease in consolidation of offices, | |
operating expense of LINE Pay, etc. | ||
• | Promoting organizational/business restructuring (e.g. consolidation of e-book businesses, | |
Topics | investment in Demae-can, etc.) | |
• | Introduction of payment fee for PayPay had extremely small impact on cancellation: 0.2% on the | |
number of merchants and 0.1% on PayPay GMV | ||
• | Terminated royalty payments from September, as a result of buy-out of Yahoo!-related trademarks, | |
technical licenses, etc., in Japan |
1
Handling of Data at LINE Corporation | Whole Group |
- Final report received from the Special Advisory Committee on Global Data Governance
- Based on the recommendations, further promote initiatives already in place and implement new initiatives to strengthen governance of entire Group
Future Policy of Z Holdings
- Sincerely address opinions and suggestions of users and experts, increase transparency to society, and further promote the creation of an environment where users can use services with a sense of security
- Appropriately share the knowledge gained through LINE's efforts to strengthen company-wide governance and risk management functions, etc., with Z Holdings Group companies, and further promote Group-wide efforts to improve governance
Future Initiatives
- Establishment of "horizontal and vertical governance structure from the user's perspective"
- Measures to be taken in individual areas to improve Z Holding's global data governance
- Based on the perspectives of economic security, security/privacy etc., will implement measures so that the Group companies will comply with NIST standards, and measures to protect personal data, etc.
Impact on FY21 consolidated results is expected to be minimal
2
FY21 H1 - Status of PMI | Whole Group |
- PMI after the integration with LINE is progressing steadily, while placing top priority on the strengthening of data governance
- In addition to business synergies, implemented various measures to generate cost synergies and to focus on businesses that need to be addressed
Business Synergies
Cost Synergies and Focus on Businesses That Need to Be Addressed
1
Business Synergies
• Began cross-platform ad | NEW |
distributions |
(Began distributing Yahoo! Ads (Programmatic) in LINE NEWS sections)
- Launched MySmartStore
- Increase in LINE Official Accounts
- Began sales collaborations/cross selling
- Began Quick Commerce
- Expanded LINE GIFT
- Began linkage of MPM payment
2
Cost Synergies
NEW
- Consolidated offices of Group companies
- Decreased operating expenses of LINE Pay
- Optimized financing costs
- Reduced content procurement costs
3
Focus on Businesses That Need to Be Addressed
• Investment in Demae-can | NEW |
- Privatization of eBOOK Initiative Japan (Scheduled)
- Completed sales of YJFX! 1
- Full-scalelaunch of Z Entertainment Corporation
1. YJFX, Inc. changed its trade name to Gaika ex byGMO, Inc. on September 27, 2021 | 3 |
Cost Synergies | Whole Group |
- Pursuing cost synergies through consolidation of offices of Group companies, reduction of operating expenses of LINE Pay (e.g. for sales promotion, acquisition of merchants), etc.
- From FY22 onwards, aim to further realize cost synergies through internalization of data centers, etc.
Expected Cost Synergies
FY21 and onwards | FY22 and onwards | ||
Consolidation of offices of Group companies | Decrease in LINE Pay operating expenses | ||
Optimization of financing costs | Reduction of content procurement costs | ||
Cost synergy amount (Yearly equivalent/estimate)
FY21: approx. JPY 10 B + 1
Some of LINE's data centers to be operated in-house
1. Full year comparison with FY20 | 4 |
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Z Holdings Corporation published this content on 02 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2021 06:28:05 UTC.