Message
Internet for Everyone
We would like to express our sincere gratitude to our shareholders for their continued support of GMO Internet Group.
Since our establishment as an Internet business in 1995, GMO Internet Group has operated under the corporate catchphrase "Internet for Everyone." We have concentrated our management resources on providing the "foundation" of the Internet, such as Internet infrastructure and service infrastructure, with the aim of making the Internet richer and more convenient.
GMO Internet Group manages its business based on a common value foundation called "GMOism" with a long-term perspective. GMOism includes our "Invariant Goal" as well as various management know-how, equivalent to our corporate motto and precepts that we have been reciting and practicing since we started our Internet business in 1995. Within this GMOism, we have an ultra-long-term plan called the "55-Year Plan" as an internal commitment, which aims to achieve net sales of 10 trillion yen and ordinary profit of 1 trillion yen by 2051. With the goal of achieving this "55-Year Plan" and becoming a corporate group that will continue for centuries, we are united in our efforts to create new Internet culture and industry, as well as our customers' "smiles" and "inspiration." We are dedicated to contributing to society and people through our business endeavors.
Strong foundation of recurring revenues, excellent start to FY2025
The consolidated financial results for the first quarter of FY2025 ending December showed an increase in both revenue and profit. While making forward-looking investments for future growth, primarily in infrastructure, we achieved record quarterly operating profit excluding gains and losses from VC investment disposals. We believe we have made a smooth start to FY2025. Our solid recurring revenues in infrastructure and other areas continue to drive growth, enabling us to respond to economic uncertainties such as Trump tariffs.
As ensuring Internet security has become an urgent social issue, we have established our "Security Business" as an independent segment called "Internet Security Business," separated from what was previously included in the "Internet Infrastructure Business," to clarify its positioning as the Group's most prioritized field. We will further strengthen and develop this business as a medium- to long-term growth driver.
Regarding shareholder returns, our basic policy is to target a total shareholder return ratio of 50%, with (1) a dividend payout ratio target of 33% or more of net income, and (2) share repurchase targets of 50% of net income minus total dividends. This is to be implemented flexibly according to share price levels, taking into consideration the overall performance and financial standing of the Company. Regarding the repurchase and cancellation of treasury stock, we believe that repurchasing and cancelling the 38.35 million shares we issued at the time of our withdrawal from the loan credit business in 2006-2007 to increase capital is an appropriate way to return profits to our shareholders. The total shareholder return ratio for FY2024 is expected to exceed our basic policy of 50% and reach 108%, due in part to the establishment of a new 10 billion yen framework for treasury stock acquisition. We will continue to execute the repurchase and cancellation of treasury stock in a steady and solemn manner.
In January 2025, GMO Internet Group transitioned to a position closer to a pure holding company from its previous business holding company structure. Simultaneously, GMO Internet (4784), which inherited our ancestral infrastructure business, also started under the new structure. We will continue to evolve our group structure further, maximize group synergies to accelerate growth speed, and ensure sustainable growth. As a result, we will work toward achieving our ultra-long-term "55-Year Plan" and expanding our corporate value. We would like to ask our shareholders for their continued understanding and support.
As of 5/2025
SincerelyMasatoshi Kumagai
Founder, Chairman and Group CEO
