The following is a brief overview of GMO Internet Group business results in the first quarter of Fiscal Year 2013. For further details please visit our Investor Relations website.
■Financial Results Overview
●Sales and profit both increased in the first quarter. Net Sales and Net Profit grew 27% and 23% respectively to reach record high levels.
●The Web Infrastructure and Ecommerce segment continued to expand its customer base driving profit growth throughout the Group. In the Internet Advertising segment, the advertising agency business, led by the GMO AD Partners group, had a strong quarter as a result of new customer acquisition in the listing business. We are now striving to improve profitability in this segment by strengthening sales of proprietary products.
■Internet Securities Segment
●In the first quarter, we saw dramatic growth in both FX and securities trading volume on the back of highly active currency and securities markets.
●We invested in growing the FX business into new regions, and looked to cultivate synergies between FX Prime and existing operations with the objective of achieving sustained market share growth growing forward.
●We first began to monetize the G-Gee game platform in July 2012. Since then revenue has doubled and we have reduced losses in the business by JPY200 million. Looking forward to the second quarter, we are confident that we will be making a monthly profit, and are aiming to be profitable on a quarterly basis in the third quarter.
●Because G-Gee games operate on our own platform we are able to direct users between games, encouraging user retention. This is an effective, low-cost marketing tool, and one of our core strengths, and has enabled us to push multiple game titles into the Google Play top sales rankings.
We are focused on achieving profitability in the Smartphone Game business as we lay the foundations for Social & Smartphone to become the fourth pillar of the Group – joining the Web Infrastructure, Internet Media, and Internet Securities segments.
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