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." This 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, announcement of increased share buyback
The consolidated financial results for the second quarter of FY2024 showed an increase in revenue but a decrease in profit. The Internet Infrastructure Business, which is strong in solid recurring revenues and is a collection of No.1 services, performed extremely well, generating over 9 billion yen in profit for the third consecutive quarter. On the other hand, in the Internet Finance Business, we recorded a provision related to the securities business in Thailand. To resolve this issue within this fiscal year, we have decided to terminate the margin trading service by the end of the year.
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, and we will continue to execute this in a steady and solemn manner. Along with the announcement of the second quarter financial results, we have decided to expand the share buyback program after comprehensively considering the current stock price level and future performance outlook.
GMO Internet Group aims to accelerate growth through the recent transition to a holding company structure, achieve our ultra-long-term "55-Year Plan," and expand our corporate value. We would like to ask our shareholders for their continued understanding and support.
As of 8/2024
SincerelyMasatoshi Kumagai
Founder, Chairman and Group CEO