The following is an overview of the FY12/2015.
For more details please refer to the following.
Results presentation materials(here)
Results presentation video (here)
◇(IR) Masatoshi Kumagai talks about GMO Internet Group Strategy
◇Q1 Summary(here)
◇Q2 Summary(here)
◇Q3 Summary(here)
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■Financial Overview
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●In 2015, forecasts were achieved for a 6 consecutive years.
This is a new record. Despite the strategic investment, operating profit increased 14.5% YoY to JPY14.8 billion. As a result of the sale of some of the company’s shares in GMO CLICK Holdings, we made upward revisions twice and net profit was up significantly.
●This is consolidated quarterly earnings over three year.
We had strategic investment in C2C handmade market “minne”,
global strategy and technology shift in online advertising & media throught year for our sustained growth after 2016.
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■Group News
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◇Shareholder return
●Under our policy dividend payout ratio 33% in 2015.we made an announcement that dividend per in Q4 share would be raised.
After three dividend increases the full year dividend was JPY38.
Total dividend per share forecast for 2016 is JPY 20.
◇Finance and Payment strategy
●Under the strategy of “Strengthening our Strengths” and ” Enhancing weaknesses with number one products”, we embarked on new initiatives in the finance and payment space.
●I believe that the Group’s efforts need to be concentrated in Finance X Technology X Innovation.GMO Payment Gateway is already the number one payment processing provider in Japan. For 4 consecutive years since 2012, GMO CLICK Securities is the global number one in FX. The two companies develop and provide services on their own systems and in the rapidly evolving finance field. This strength in technology is an important advantage.
●New company, SMBC GMO PAYMENT, opened for business on February 2, 2016. GMO Payment Gateway will provide its existing, secure, advanced payment processing system to SMBC customers.This initiative will drive sustained high growth in the growing ecommerce and FinTech fields.
●On June 29, 2015, we announced that we have entered talks with Aozora Bank with a view to establishing an online bank.
●GMO Internet Group infrastructure products are used by over 7 million customers including ecommerce businesses and other business customers using payment services. Together with the active retail users of our securities and FX trading services, we have a formidable customer base. Given the extent of the Group’s customer base, I believe that establishing a bank in the center of the Group will generate an organic economy. This is still in the planning stages but in addition to existing financial services,
we would like to see doing online transactions, analyzing and using big data with the goal of creating a revolutionary next-generation online bank. We will make an announcement on more about our strategy here, once more is decided.We think there will be exciting developments to looks forward to in this field.
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■Internet Infrastructure
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●In Q4, Net Sales was up 24.3% YoY to JPY14.8 billion and operating profit was down 35.8% YoY to JPY820 million due to the investment in promotion of minne (JPY580 million).
●Internet Infrastructure contracts reached 6.41 million.
This number doesn’t include 350,000 provide contracts. Adding those would make the total 6.76 million. New contracts number 600,000 yearly, 50,000 monthly and 1,500 daily. Most of these contracts are recurring-based-monthly or regular fee based contracts and to contribute to a long-term stable earnings base.
●Under the current theme of “ Strengthening our strengths”, we continue to invest in minne as a strong number one service in Japan, the service is performing well across all KPI.
●The transaction volume has increased 33% YoY to JPY1.68 billion in Q4.
That makes transaction volume for full year is JPY4.4 billion.
Transaction volume is expected to reach JPY10 billion annually in 2016. The number of sellers and products are No.1 in japan and continuing to expand to become overwhelmingly No.1 in terms of quality and quantity.
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■Internet Securities
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●Revenue was down 3.2% and profit was down 7.4% In Q4.
Revenue and profits grew as a result of an active FX market, and the segment achieved record high profits. At the same time, we expanded customer base. Both FX and securities had strong quarters.
●This graph shows FX transaction volume trends.
Under the current theme of“ Strengthening our strengths”,
we continue to invest in technology and in providing valued financial services to customer.
Transaction volume went down in Q4, but has now picked up again.
For 4 consecutive years since 2012, we have been the global No.1.
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■Online Advertising & Media
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● Revenue was up 8.8% YoY in Q4.Profit decreased 63.8% year YoY due to investment of JPY140 million in technology shift.
Under the theme of“reinforcing weaker segments with number one products”,
we have accelerated investment in a technology shift and continue investing in in-housed developed products.
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■Mobile Entertainment
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●Under the theme of enhancing our weakness with number one products,
we have been streamlined external titles and brought operations in-house,
building expertise and bringing costs under control.
While revenue went down, gross margin ratio was improved.
Please visit “Kumagai talks about group strategy” for forecast and shareholder return policy in 2016.
Thanks to all of your support.
Internet for everyone.
◇(IR) Masatoshi Kumagai talks about GMO Internet Group Strategy
◇Q1 Summary(here)
◇Q2 Summary(here)
◇Q3 Summary(here)
