GMO internet (9449) Q4 2024 earnings summary

Executive summary

• Achieved record-high consolidated net sales of ¥277.4B (up 7.3% YoY) and operating profit of ¥46.7B (up 9.8% YoY), driven by strong infrastructure and payment businesses, and contributions from both listed and unlisted subsidiaries.

• Transitioned to a pure holding company structure to accelerate long-term value creation, sustainable growth, and enhance group synergies, with independent management across group companies becoming more visible.

• Discontinued Thai securities business, incurring a ¥9.5B provision and exit costs, with measures to minimize future impact.

• Launched major security initiatives, including 'GMO will protect your Internet Security' and the acquisition of Flatt Security Inc. (now GMO Flatt Security Inc.), entering a major expansion phase in the security business.

• Integrated GMO Research & AI and GMO TownWiFi to form GMO Platform, with further rebranding and new company launch planned.

Financial highlights

• Net sales: ¥277.4B (+7.3% YoY), operating profit: ¥46.7B (+9.8% YoY), ordinary profit: ¥46.6B (+1.3% YoY), net profit attributable to owners: ¥13.4B (-5.8% YoY), impacted by Thai securities exit.

• Operating cash flow: ¥84.7B (up from ¥14.9B in FY23); cash and equivalents at year-end: ¥466.5B, up ¥77.5B YoY.

• Dividend per share for FY2024: ¥41.80 (payout ratio 33.0%).

• Infrastructure business delivered an 8.1% YoY revenue increase, marking the fifth straight quarter of record results.

• Crypto asset business turned profitable for the first time since 2021, with trading volume and revenue more than doubling YoY.

Outlook and guidance

• FY25 will see further evolution with the holding company structure, succession of founding business, and integration of GMO Town WiFi and GMO Research & AI.

• No consolidated forecast for FY2025 due to market volatility in Internet Finance, Cryptoassets, and Incubation segments; monthly sales indicators will be disclosed.

• Focus on expanding security business and leveraging group synergies for new growth.