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# GMO Internet Q2/FY2024 Earnings
- URL: https://www.fintechobserver.com/gmo-internet-q2-fy2024-earnings/
- Published: 2024-08-11T13:27:22.000Z
- Updated: 2024-12-15T07:33:53.000Z
- Description: During July, GMO Financial Holdings took additional provisions for doubtful accounts at GMO-Z com Securities (Thailand) for the second…
- Author: Norbert Gehrke
- Tags: #Migrated-1734246964256, #Import 2024-12-15 07:16

During July, [GMO Financial Holdings took additional provisions for doubtful accounts at GMO-Z com Securities (Thailand)](https://medium.com/tokyo-fintech/loss-provisions-at-thai-gmo-z-com-securities-leading-to-dividend-cut-0ee5e17727cb?ref=fintechobserver.com) for the second quarter of the fiscal year ending December 2024, and as a result, provided a dividend forecast that is significantly below the FY2023 payouts.

![](https://storage.ghost.io/c/46/cb/46cbd57f-e0e8-41a4-a1e2-710103a4267b/content/images/2024/12/1-ypip5mgiw30cxo_m-ad8zg.png)

It also implied that GMO Internet Group’s second quarter would not come out great, and indeed, despite a strong performance in the infrastructure segment, overall results were flat year-on-year due to the loss provisions taken in the Thai business.

#### Group Restructuring

![](https://storage.ghost.io/c/46/cb/46cbd57f-e0e8-41a4-a1e2-710103a4267b/content/images/2024/12/1-ndo-tdjw5txv16o02tdt4a.png)

GMO Internet Group will execute a group restructuring effective January 1, 2025, with GMO Internet Group becoming a pure holding company, and any operating businesses moving into GMO Ad Partners, which is going to change its name to GMO Internet.

#### Business Segments

![](https://storage.ghost.io/c/46/cb/46cbd57f-e0e8-41a4-a1e2-710103a4267b/content/images/2024/12/1-k7acfqvrlwfyq7grneg3ya.png)

About two thirds of GMO Internet Group’s sales come from the Internet Infrastructure segment, with Internet Finance (FX & Securities Trading) and Cryptoassets (Mining, Exchange & Payments \[Stablecoin\]) making up 18.7% of sales, and Online Advertising & Media bringing in the residual 12.4%.

![](https://storage.ghost.io/c/46/cb/46cbd57f-e0e8-41a4-a1e2-710103a4267b/content/images/2024/12/1-zmwjarlhhwb2hyrornrh_w.png)

As stated above, loss provisions in the Thai brokerage unit led to a flattish year-on-year profit picture.

#### Cryptoassets Segment

![](https://storage.ghost.io/c/46/cb/46cbd57f-e0e8-41a4-a1e2-710103a4267b/content/images/2024/12/1-3-nnvg2t5oo37gsofezp_w.png)

Cryptoassets remained profitable for a third straight quarter, increasing revenue by 86% year-on-year, and profits by JPY 0.8bn. Much of that increase in revenue can be attributed to the positive development in the crypto markets, especially the Bitcoin price.

#### Internet Finance Segment

![](https://storage.ghost.io/c/46/cb/46cbd57f-e0e8-41a4-a1e2-710103a4267b/content/images/2024/12/1-ybjldl_gs-4ecp_izxy3ca.png)

Stock trading commissions were down 17.2% year-on-year, after the first quarter of FY2024 had seen a spike due to the Japanese equity markets recording all-time records. With trading volume only down 4.5%, this points to declining commission rates, especially in light of “zero fee trading” offered by industry heavyweights Rakuten Securities and SBI Securities. With a market share of only 1.7%, it is questionable whether this business can be carried through by FX trading (20% market share) and CFD trading (profits up 33% year-on-year).

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