GMO Financial Holdings (7177) investor relations material

Executive summary

• Achieved record-high quarterly results, with operating revenue of ¥16.23 billion, up 25.1% year-over-year, and net income attributable to parent of ¥4.21 billion, up 67.9% year-over-year.

• Operating profit reached ¥6.46 billion, a 53.1% year-over-year increase and an all-time quarterly high.

• Entered the small-amount, short-term insurance business via acquisition, with goodwill of ¥83 million to be amortized over five years.

• Strengthened shareholder returns with a revised dividend policy and set a quarterly dividend of ¥13.69 per share.

Financial highlights

• Operating revenue rose 25.1% year-over-year and 46.2% sequentially to ¥16.23 billion.

• Operating profit increased 53.1% year-over-year and 197.0% sequentially to ¥6.46 billion.

• Net income grew 67.9% year-over-year and 173.5% sequentially to ¥4.21 billion.

• Comprehensive income for the quarter was ¥4.11 billion, up 64.2% year-over-year.

• Total assets at quarter-end were ¥1,349,483 million, down ¥57,326 million from the previous year-end, mainly due to a decrease in user crypto assets.

Outlook and guidance

• Annual dividend forecast raised from ¥42.08 to ¥54.76 per share, reflecting strong Q1 results; quarterly dividend set at ¥13.69.

• Dividend payout ratio target set at 65% or higher, with a minimum DOE of 10%.

• No consolidated earnings forecast disclosed due to high sensitivity to market conditions in securities, FX, and crypto businesses.