The following are the results on IFRS basis.
Revenue 50,298 million yen (＋20.7％)
Operating profit 16,249 million yen (＋25.1％)
Profit before income taxes 34,756 million yen (＋161.6％)
Profit 24,361 million yen (＋171.2％)
Profit attributable to owners of the parent 24,152 million yen (＋173.9％)
(% indicator shows the year-on-year changes)
The following are the results on IFRS basis.
Revenue 59,100 million yen (＋17.5％)
Operating profit 20,311 million yen (＋25.0％)
Profit before income taxes 18,837 million yen (－45.8％)
Profit 12,635 million yen (－48.1％)
Profit attributable to owners of the parent 12,368 million yen (－48.8％)
(% indicator shows the year-on-year changes)
We continue our mid-to-long term focus on expanding/strengthening our businesses and growing our profits. In addition, we have established a dividend payout target as part of the shareholder return policies and to carry out the requisite IR activities.
We guide for a dividend per share (DPS) of ¥82 per share for the FY2023, a consecutive dividend increase since the start of dividend payments, thanks to the highly favorable business environment. This reflects our commitment to enhance our shareholder returns and increase our corporate value in the medium-to-long term.
We view reducing the trading lot size as one of the viable ways to increase the number of investors trading in our stock and thereby increase the stock's liquidity. We have not made any decision regarding changing the trading lot size as of now, but will continue to consider the stock price, supply/demand sitation, changes in shareholder structure and other related issues.
155,598 operating merchants as of end-June 2023.
(*) Figure exclude an operating merchants of a specific merchant and stores using fincode byGMO. If included, operating stores would be 562,598 stores for the same period.
We provide payment-related services that support the customer's online and cashless migration and digital transformation (DX). Annual transaction value exceeds ¥14 trillion and our online comprehensive payment services have been adopted by over 150,000 merchants such as EC operators and public institutions of NHK and National Tax Agency, etc. (As of end-June 2023, consolidated figures)
As the leading company in the payment industry, we contribute to the advancement and realization of a sustainable society by driving social innovations using payment and financial technology through our services, such as online comprehensive payment service, payment services in the offline market, Buy Now Pay Later (BNPL), BaaS Support services to financial institutions and enterprises and strategic investment and lending to overseas leading-edge FinTech companies.
We receive "stock and transaction" type of revenues from our merchants for our payment processing business.
We receive the following 4 types of revenues.
1. “Initial (Initial revenue)” that is the upfront payment received at the time of implementation of payment terminal and payment services
2. “Stock (Monthly revenue)” that is charged for our operation and maintenance on a monthly basis
3. “Fee (Transaction processing revenue)” that is charged per transaction processing according to the number of processed payments
4. “Spread (Merchant acquiring service revenue)” that is charged according to the amount of processed payments
By expanding our payment processing business we accumulate various data. By using and analyzing these data we create new value-added services that lead to profit growth of our group companies and increase our core business forming the so-called “ecosystem” of our business.
During the Q3 of FY2023 (April to June 2023) transaction volume (Consolidated) amounted to 1.58 billion and transaction value (Consolidated) reached 3.7 trillion yen.(*)
(*)The TRX volume is 1.42 billion and TRX value is 2.5 trillion yen if GMO Financial Gate is excluded.
"Spread (merchant acquiring service revenue)" is received under “representative merchant contract” that covers payments between a merchant and various credit card companies as a comprehensive package. According to this contact, merchants’ proceeds are paid to us from each credit card company, and then are paid to the merchants by us as a lump sum. The commission that is charged on merchant proceeds, which is paid by us to a merchant, is named "spread (merchant acquiring service revenue)". In calculating this type of revenue we have adopted a net method of accounting.
The online payment service is used by a diverse range of customers, particularly by merchandise and non-merchandise EC operators, and also by public institutions, etc. In addition, payment services are also offered to offline stores, and the BaaS Support service is primarily used by financial institutions and business operators.
Examples of use cases can be found in the link.
As the leading company in the payment industry, we constantly endeavor to expand and penetrate into new business domains including in the areas of comprehensive online services, offline payment services, Buy Now Pay Later (BNPL), BaaS support to financial institutions and business operators and strategic investments/lending to cutting-edge FinTech operators.
In addition, we are carrying out upfront investments into new businesses, recruitment of talented individuals, enhancement of the payment network foundation as well as further fortify security, in order to be a company that sustains an over-25% growth in operating profit in the medium-to-long term.
We promote business activities that support online and cashless migration, paperless operations, digital transformation (DX) and financial inclusion. We strive to contribute to sustainable social advancement and sustainable enhancement of enterprise value by resolving societal issues through our business activities.
Gross profit margin of our core business, online payment processing service, is approximately 85%. Gross margin of value-added services is different from service to service, but is lower than that of the payment processing service.
We have recorded 20,260 million yen borrowings under current liabilities and 19,742 million yen corporate bonds (Zero Coupon Convertible Bonds), 9,090 million yen borrowings under non-current liabilities on our consolidated balance sheet as of end-June 2023.
We value achieving an operating profit growth rate of 25%, which is also our management index.
*Since the beginning of FY2017 we have aimed to properly manage returns of the Group's core businesses and thus changed our management indicator from ordinary profit growth rate to operating profit growth rate.
We handle personal and confidential information such as credit card numbers, etc, as part of our business of providing credit card payment processing services.
In order to prevent information leakages and as one of the measures to strengthen risk management, the Company is the first listed payment processing company to obtain certifications of ISO/IEC 27001:2013 (Japanese standard JIS Q27001:2014) applicable to all offices of GMO-PG and its consolidated companies. Complying to these strict international standards is an objective recognition of the appropriateness and safety of the information security management systems of GMO-PG and its consolidated companies.
In addition, accreditation from the global security standard PCI DSS, compiled by the five internal credit card brands of JCB, American Express, Discover, Master Card, and VISA, was first received in December 2008 and has been re-certified annually every year with the latest certification acquired in December 2022.
For the handling of personal information, we have complied with Japan Standards Association's "JIS Q15001 Personal Information Protection Management Systems - Requirements" and have also received the Privacy Mark that certifies business operators with appropriate protection measures for handling personal infromation. In addition to complying with the various regulations and standards, we manage and operate the personal information protection managemnt systems based on even more stringent internal standards.
Consolidated subsidiaries of the Company are as follows.
GMO Epsilon, Inc., GMO Payment Service, Inc., GMO Financial Gate, Inc. and GMO-Z.COM PAYMENT GATEWAY PTE. LTD.
The Company makes decisions independently for sales activities of all businesses and all other operations, and are only required to report important resolutions regarding business activities to the parent company GMO Internet Group, Inc. We acknowledge that the management's independence is secured and that the concurrent positions held by Directors of GMO Internet Group do not hamper the Company's indigenous decision-making.
Specifically, in the event of a transaction between GMO-PG and its consolidated with GMO Internet Group, be it for new or recurring transactions, a careful examination is made to compare the terms and conditions and appropriateness against an arms' length transaction with a third party, from the perspective of protecting the interests of non-controlling shareholders. Specifically, such transactions will undergo periodic reviews to comprehensively assess and compare the transactions against arms' length transactions with third parties, and report the transactions' appropriateness to the Board of Directors attended by independent External Directors.
Furthermore, important transactions and actions that entail a conflict of interest between the controlling and non-controlling sharehoders are deliberated and considered at the Special Committee which includes independent External Directors. The findings are reported to the Board of Directors where a resolution is reached.
For detailed information, please refer to article “2. Risk factors” in paragraph “2. Business Overview” of “Securities Report for the Fiscal Year Ended September 2022” (only available in Japanese language).
GMO-PG and its consolidated companies uphold the management principle to "pursue both material and spiritual prosperity through our contributions to the progress and development of society," and established a governance strucutre to effectively and efficiently realize the management principle. GMO-PG and its consolidated companies is strengthening its governance structure through the various rules for employees at all the consolidated companies, together with the Rules for Affiliated Companies which stipulates the management policies and structures at the consoldiated companies and the Employee's Code of Conduct which stipulates basic views pertaining to the management principle and compliance.
The Company has transitioned to a company with audit and supervisory committee on December 19, 2021. The Company strives to strengthen the corporate governance strcuture by enhancing the supervisory and oversight function of the Board of Directors, speeding up the decision-making through further devolution, and carrying out business operations that improves the efficiency, transparency and fairness of management.
For more detailed information, please refer to article “4. Corporate Governance” in paragraph “4. Information on the Company” of “Securities Report for the Fiscal Year Ended September 2022” (only available in Japanese language).
The Company changed its listing market to Tokyo Stock Exchange Prime Market on April 4, 2022. The code is 3769.
The company was initially listed on Mothers Market of the Tokyo Stock Exchange on April 4, 2005. The number of shares issued was 18,975.2 shares, the public offering price was 800,000 yen and the initial listing price – 4.5 million yen.
In addition, we conducted a 4-for-1 common stock split on November 18, 2005, 200-for-1 common stock split on July 1, 2012, 2-for-1 common stock split on October 1, 2014 and 2-for-1 common stock split on October 1, 2018.
76,557,545 shares as of June 30, 2023.
The Company’s fiscal year is the end of September of each year.
Attendance to the financial results briefing meeting is intended for securities analysts that disseminate information widely to sharesholders and investors and mass media professionals only, individual investors are not invited due to constraints of the venue. Materials used at the financial results briefing are posted on the company's website. Company meetings for individual investors are held semi-annually, in principle. Information on the upcoming meeting will be posted on the website as well as stated in the email letter.
Please contact Corporate Value Creation Strategy Division, Investor Relations Office
The Silent Period is established as our own corporate rule. The purpose is to prevent the leakage of information regarding the financial results that can influence the share price during the preparation of materials for financial results briefings.
The Company observes the Silent Period each quarter beginning on the closing day of its financial accounts and lasting 3 weeks.
Yes, we will answer to your questions. However, be informed that we will not provide any information regarding unreleased financials results, business performance results and forecasts.