Key Takeaways From Yahoo Japan’s Earnings, And Expectations For Fiscal 2018

Yahoo! Japan (OTC:YAHOY) recently announced its Q4 FY’17 (fiscal 2017 ends March 2018) results, reporting steady revenue growth from its core media and e-commerce verticals through the year. The company continues to expand its services and footprint in the Japanese e-commerce industry, and strengthen its position in the Japanese online ad industry. As a result, its commerce segment revenues were up 6% y-o-y to nearly ¥600 billion ($5 billion) for the year. In addition, the company’s media business segment reported a 3% increase in revenues to ¥288 billion ($2.4 billion). However, company wide margins compressed through the year due to increased operating expenses.

Yahoo! Japan’s advertising revenues have been increasing for the past few years, largely due to the increased adoption of smartphones and the company’s hold in the Japanese smartphone market. For the current fiscal year, we expect higher mobile engagements and page views to continue to drive revenues. We forecast combined Media revenues to increase 5% y-o-y to $2.4 billion. Similarly, Yahoo! Japan’s e-commerce businesses are also likely to benefit from the continued expansion of service offerings in the mobile domain. Consequently, we expect the company’s transaction value across the e-commerce business segment to improve in the coming quarters. Additionally, since online sales still account for a relatively small portion of total retail sales in Japan, the untapped market provides a significant opportunity for the company to grow its business in the coming years. For the current year, we forecast e-commerce revenues to increase 8% over the prior year period to $5 billion. We have summarized our expectations for Yahoo! Japan for the fiscal year on our interactive dashboard platform. You can modify the revenue and net profit expectations for each division to see the impact on the company’s expected earnings for the year.

See our complete analysis of Yahoo! Japan here

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