【IR】GMO Internet Group Strategy 2016 Q2 Summary

The following is an overview of the 2nd Quarter (April to June) FY12/2016.
For more details please refer to the following.

Results presentation materials (here)
Results presentation video(Under preparation)
(IR) Masatoshi Kumagai talks about GMO Internet Group Strategy
(IR) GMO Internet Group Strategy 2016 Q1 Summary(here)

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■Financial Overview
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●Executive Summary: Q2 FY2016

Net Sales was up 8.2% to JPY 33.5 billion, and operating profit was up 8.4% YoY to JPY 5.03 billion. The graph below shows increase and decrease YoY.

●The following graph shows quarterly earnings.
Blue represents net sales and light blue represents operating profit.
As shown, we achieved record highs for both.
Operating profit reached JPY 5 billion.

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■Internet Infrastructure
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●In Internet Infrastructure, both revenue and profit were up significantly. Orange represents strategic investments. Thanks to strategic investments last year, both revenue and profit were up significantly. I’m sure you can sense the strength of the Internet Infrastructure segment.

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■Internet Securities segment.
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●In Internet Securities, net sales is as strong as last year, in which it achieved a record high. Profit also reached a record high, because we leveraged expertise in technology and were given a boost from Brexit (UK leaving the EU) at the end of June. You could say our technological expertise made for opportunities in tough times.

●For four consecutive years since 2012, we have achieved the highest trading volume globally.

Our system, development, maintenance and operation are all done in-house, so that our service is well- reputed among users.

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■Online Advertising & Media segment.
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●In Q2, the Online Advertising & Media segment’s Net Sales was up 14.2 % and profit was down 1.0% from the previous year.

Online advertising was back to double digit growth. However, we are still struggling to improve profitability. With an increasing in-house production ratio, we will improve our profitability.

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■Mobile entertainment segment.
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●We have taken out external game titles and brought operations in-house, building expertise and bringing costs under control. We are aiming to produce a hit title, and are planning on releasing 4 new titles next year.

Please refer to “Masatoshi Kumagai talks about the GMO Internet Group strategy” for the 2016 Overview of the group’s current position and an outline of our strategy going forward, particularly for “.shop” finance and other major themes.

We appreciate your ongoing support of the GMO Internet Group.

Internet for Everyone

(IR) Masatoshi Kumagai talks about GMO Internet Group Strategy

(IR) GMO Internet Group Strategy 2016 Q1 Summary(here)