"Internet for Everyone" is the corporate slogan we entered the industry with in 1995. Today, after having been listed on the first section of the Tokyo Stock Exchange, it continues to be our guiding sentiment. The growth of the Internet has added a new dimension to the economy, to business and to people's lifestyles. This has been a dramatic change that has in turn made the Internet more important than ever. It is no exaggeration to say that whether you are an individual or a corporation, how you use the Internet is critical in determining whether you succeed or fail.
It is our mission to continue cultivating the Internet. Through unique services and technology we develop the Internet solutions people want and provide the infrastructure essential to support an Internet that benefits society as a whole.
Infrastructure, Internet Securities segments driving revenue and profit growth
In fiscal 2011 the Group maintained strong revenue growth, achieving a 38.7% YoY increase in net sales and over 90% growth in net profit. Consolidated operating profit was up 31.4% despite JPY1.8 billion in growth business investment in the same period. Moving into 2012 we are focusing on expanding the point incentive program in Internet Media, and growing user base in Social Media & Smartphone to further cultivate marketing synergy across segments. At the same time we continue to leverage existing strengths derived from operating on our own in-house systems - speed and cost efficiency.
Focus on Web Infrastructure & Internet Media profit growth in the coming term
Despite robust revenues, the Web Infrastructure segment reported only 1.5% growth in profit following aggressive investment primarily in cloud infrastructure in the web hosting business. This term, we expect to see improved profitability after completion of the investment phase. In Internet Media, profit fell due to lackluster performance in the Media & Search Media business. Going forward, we aim to improve profitability in the segment through increased sales productivity and new products including SEO solutions for smartphone media.
Strong performance and new targets in growth businesses
The Social Media & Smartphone Platform segment achieved exceptional growth in user base, particularly for smartphone gaming platform, G-Gee. G-Gee acquired 1.99 million members (Japan/Global) in fiscal 2011, almost twice our initial target for that period. This year we will be looking at ways to monetize G-Gee while working toward a membership target of 18 million. In the Group Commerce business, daily deals website, Kumapon saw encouraging revenue growth, and this term will partner with Shareee, Inc. in an effort to close in on competitors that reached the market earlier.
We look forward to the ongoing support of our stockholders as we continue to pursue our growth strategy and maintain the importantcontribution we make to the web as an infrastructure provider.
Sincerely
Masatoshi Kumagai
Group CEO
GMO Internet Group
