The following is an overview of the 1st Quarter (January to March) FY12/2019
For more details please refer to the following.

 

Results presentation materials (here)
(IR) Masatoshi Kumagai talks about GMO Internet Group Strategy (here)
Older business results (here)

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■Financial Overview
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As you can see, the first quarter financial results ended with increase in revenue and decrease in profit. Internet Infrastructure business was an all-time high for six consecutive quarters with continuous high growth rate.

Due to temporary market fluctuation in currency exchange and fall in transaction, Internet Finance barely passed mark as a beginning of fiscal year.

This is an executive summary of operating profit covering January to March. Profit dropped 260 million yen to 5 billion yen YoY as the increase in operating profit in Internet Infrastructure and Cryptocurrency segments offset the decrease in operating profit in Internet Finance segment.

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■Internet Infrastructure
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This is a transition of quarterly net sales in Internet Infrastructure. You can see our accelerated growth is 2.5 times the volume of 5 years ago(Q1 2014) with 17.5% increase year-on-year.

This is a transition of quarterly operating profit. In addition to payment and provider, minne that became profitable contributed our 39.7% significant increase resulting in 3.61 billion yen in profit.

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■Online Advertising & Media
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This is a transition of quarterly net sales and the breakdown in Online Advertising & Media.

Our video and social network advertising grew, but the advertisement distribution amount decreased as placement standards of ad tech product were tightened, so net sales decreased by 1.6% year-on-year.

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■Internet Finance
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This is a transition of quarterly performance.

We made a late start due to temporary, rapid market fluctuations and decrease in trading volume.

This is a transition of FX trading volume. Annual FX trading volume was No.1 worldwide for the 7th consecutive year and market share was 22.2%.

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■Cryptocurrency segment
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This is a transition of quarterly performance in cryptocurrency segment.

As restructuring of mining business is underway, the deficit decreased substantially.

I will explain about mining and the exchange business in breakdown.

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■Cryptocurrency segment: Cryptocurrency exchange business
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GMO Coin, which is a consolidated subsidiary of GMO Financial Holdings, is at the core of this subsegment.

Lower volatility led to the decline in the cryptocurrency trading volume, which has resulted in a loss, but volatility is now recovering and Bitcoin price hit a new high for this year in April, so the business environment is improving.

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■Cryptocurrency segment Cryptocurrency mining business
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Although our revenue is decreased year-on-year, the deficit decreased.

As a part of restructuring revenue, we are relocating our mining center to seek cheaper electricity resulting in our revenue decreased at this stage. Consequently, our hash power that is productive capacity had decreased temporarily as anticipated.

The electricity cost (variable cost) decreased and the depreciation cost (fixed cost) of mining machines became zero, so the cost structure improved significantly.

Please refer to “Masatoshi Kumagai talks about the GMO Internet Group strategy”　 Overview of the group’s current position and an outline of our strategy going forward, particularly for Internet banking operation and other major themes.

 

We appreciate your ongoing support of the GMO Internet Group.

Internet for Everyone

Results presentation materials (here)
(IR) Masatoshi Kumagai talks about GMO Internet Group Strategy (here)
Older business results (here)