GMO Financial Holdings (7177) Q1 2025 earnings summary

Executive summary

• FX business maintained high profitability and started the year strong, with unique user growth initiatives and pursuit of top-tier service quality.

• Thai securities business faced additional loan loss provisions due to collateral value declines, with outstanding receivables steadily decreasing.

• Operating revenue for Q1 FY2025 was ¥12,977 million, up 0.7% year-over-year, with net operating revenue at ¥12,067 million, also up 0.7%.

• Operating profit decreased by 3.0% to ¥4,221 million, and net income attributable to parent company shareholders was ¥2,504 million, down 10.5% year-over-year.

• Revenue growth was limited by declines in CFD and financial income, while increased advertising and provision for doubtful accounts in Thailand contributed to profit declines.

Financial highlights

• Operating revenue for Q1'25 was ¥12,977 million (+0.7% YoY); net operating revenue was ¥12,067 million (+0.7% YoY).

• Operating income decreased 3.0% YoY to ¥4,221 million; ordinary profit fell 14.2% to ¥3,569 million.

• Net income attributable to parent was ¥2,504 million (−10.5% YoY); comprehensive income was ¥2,499 million (−19.2% YoY).

• EPS was ¥21.23 (vs. ¥23.73 prior year Q1).

• Compared to the previous quarter, operating income surged from ¥246 million to ¥4,221 million, and net income doubled.

Outlook and guidance

• Plan to recover over 90% of Thai securities receivables by 2026 through contractual repayments.

• Q2'25 SG&A expenses forecasted at approximately ¥8 billion, excluding loan loss provisions.

• No consolidated earnings forecast disclosed due to high sensitivity to economic and market conditions in securities, FX, and crypto businesses.

• Key monthly business indicators (FX volume, stock brokerage, CFD, crypto trading, account numbers) are disclosed instead.