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, significant results from independent management
The consolidated financial results for FY2024 showed an increase in both revenue and profit. The strength of our "independent management" has significantly materialized. In the Internet Infrastructure Business, in addition to the continued strong performance in the ancestral business operated by GMO Internet (securities code: 4784) and the payment sector operated by GMO Payment Gateway, there has been a significant contribution from non-listed group companies that have grown rapidly since joining the group.
Regarding the securities business in Thailand, we have decided to discontinue operations and have completed the process. We believe this has minimized the impact on future performance.
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. Under this new structure, we will maximize group synergies to accelerate growth speed, ensure sustainable growth, and as a result, 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 2/2025
SincerelyMasatoshi Kumagai
Founder, Chairman and Group CEO
