GMO Payment Gateway (3769) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue rose 14.1% year-over-year to ¥20,295 million, driven by growth in transaction volume and value across all payment segments, exceeding plan.

• Operating profit increased 24.4% year-over-year to ¥7,254 million, with all business segments contributing to profit growth.

• Net income attributable to owners increased 32.4% year-over-year to ¥4,564 million.

• Both online and offline payment processing volumes grew faster than market averages, with total processed value up ¥1 trillion year-over-year.

• Comprehensive income surged to ¥9,080 million, up from ¥1,288 million in Q1 FY2024.

Financial highlights

• Gross profit increased 17.9% year-over-year to ¥13,618 million.

• Pre-tax profit rose 28.2% year-over-year to ¥7,587 million.

• EBITDA for Q1 reached ¥8,157 million with a margin of 42.7%.

• Free cash flow for Q1 was ¥22,291 million; cash and equivalents at period-end were ¥188,934 million, up ¥14,880 million sequentially.

• Total assets reached ¥385,793 million, up ¥41,090 million from the previous fiscal year-end.

Outlook and guidance

• Q1 results represent 51.9% of full-year revenue plan and 48.4% of operating profit plan, indicating strong progress toward FY targets.

• FY2025 revenue forecast is ¥83,377 million (up 13.0% YoY), with operating profit projected at ¥30,225 million (up 20.0% YoY).

• Profit attributable to owners of parent is expected to decline 1.0% YoY due to one-off gains in FY2024.

• Strategic initiatives for 25% operating profit CAGR are progressing, including business domain expansion and group synergies.

• Pipeline for H2 is on track, with key growth drivers in EC, utilities, and new business domains.