GMO Financial Holdings (7177) Q4 2024 earnings summary

Executive summary

• FY2024 saw record-high operating revenue of ¥53,269 million, up 3.6% year-over-year, driven by strong FX/CFD and a surge in crypto asset business, despite a decline in overall profit due to significant loan loss provisions in the Thai securities segment.

• Net income attributable to parent was ¥4,745 million, down 38.0% year-over-year, mainly due to a ¥9,534 million provision for doubtful accounts.

• The company decided to exit the Thai securities business after ending margin trading services in December 2024, with the subsidiary ceasing all operations by end-2025.

Financial highlights

• Operating revenue rose 3.6% year-over-year to ¥53.3 billion, and net operating revenue increased 2.2% to ¥49.2 billion.

• Operating income dropped 38.2% year-over-year to ¥8.9 billion, and net income fell 38.0% to ¥4.7 billion, mainly due to increased loan loss provisions.

• Ordinary profit dropped 40.2% to ¥8,433 million.

• Net assets increased to ¥48,442 million, up ¥2,002 million from the previous year.

• Q4 operating revenue decreased 10.0% sequentially, and operating income plunged 93.4% from the previous quarter.

Outlook and guidance

• For FY2025, the focus is on strengthening core businesses, enhancing service convenience, and expanding cross-selling between FX and CFD.

• Plans include reinforcing stock-type products in crypto assets and accelerating new business initiatives in virtual offices and medical platforms.

• No consolidated earnings forecast disclosed due to high sensitivity to market conditions in securities, FX, and crypto businesses; key monthly business indicators are disclosed instead.

• Dividend policy targets a payout ratio of at least 65% for FY2025.