"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.
In the first nine months of fiscal year 2012, the Group achieved new record high sales and profits.
Consolidated operating profit reached JPY6.5 billion, and the Group's growth strategy businesses continued to progress steadily toward profitability.
Forecast Results are Met and Exceeded for Third Consecutive Year
In FY2012, GMO Internet Group achieved record sales and profits, despite aggressive investment in new businesses. After a total investment of JPY2.1 billion in the 12-month period, operating profit grew 21.6% to JPY 9.1 billion, and as promised operating results targets were met for the third consecutive year.
The Web Infrastructure & Ecommerce segment's stable of number one products continued to grow market share, and revenue and profits in the segment grew 24.0% and 38.3% respectively. The Internet Securities segment contributed JPY4.4 billion to profit despite being impacted by periods of low market activity particularly in the third quarter.
Rapid Growth in Internet Advertising, G-Gee Enters Monetization Phase
Performance was also strong in the Internet Media segment. The advertising business, operated primarily by Group company, GMO AD Partners, Inc. grew revenue by 31.1%, spearheading overall growth in this segment. In Social & Smartphone, the segment in which the Group's mid-to-long term growth strategy is focused, G-Gee introduced new game titles with in-game purchasing as the smartphone game business shifted from the user acquisition stage to the monetization stage. G-Gee will continue to release new, high-quality content with the objective of becoming profitable as early as possible.
14.8% Profit Growth Forecast for FY2013, Further Leveraging Synergies
Net sales is forecast to reach JPY83 billion (11.6% YoY increase) and operating profit is expected to grow 14.8% to JPY10.5 billion in FY2013. GMO Internet Group will continue to leverage technology and marketing synergies to maximize growth in all four business segments, and achieve profitability in the Social & Smartphone segment as early as possible.
We look forward to the ongoing support of our stockholders.
Sincerely
Masatoshi Kumagai
Group CEO
GMO Internet Group
