GMO Financial Holdings (7177) Q2 2024 earnings summary

Executive summary

• Operating revenue for the first half of FY2024 was ¥26,147 million, down 3.2% year-over-year; net operating revenue was ¥24,147 million, down 5.0%.

• Operating profit fell 37.6% to ¥4,945 million, and net profit attributable to shareholders dropped 56.6% to ¥1,558 million, mainly due to a large provision for doubtful accounts in the Thai securities business.

• The Thai subsidiary will terminate margin trading services by December 20, 2024, following repeated losses from collateral value declines.

Financial highlights

• Trading profit decreased 11.5% year-over-year, while fee income rose 12.0%.

• Comprehensive income was ¥2,304 million, down 42.3% year-over-year.

• Total assets increased to ¥1,236,148 million, up ¥110,649 million from the previous year-end.

• Net assets rose to ¥46,911 million, with an equity ratio of 3.8%.

• Cash and equivalents at period-end were ¥88,230 million, up ¥7,081 million from the previous year-end.

Outlook and guidance

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

• Key monthly business indicators such as FX volume, stock trading value, CFD trading value, and crypto trading value are disclosed instead.