Medium-to-long term goal and growth strategy

Medium-Term Growth Scenario

GMO Pepabo Inc. announced its mid-term policy in its full-year financial results for the fiscal year ending December 31, 2024. The company aims to drive business growth by adapting flexibly to environmental changes, reinforcing its stable revenue base, and expanding its business domain.

The strategy outlined aims to achieve sustainable profit growth by pursuing business expansion and shareholder returns. It includes expanding stock-based business domains (such as online game servers and new services), entering new business areas (such as VTubers and the metaverse), and commercializing AI-related expertise. To strengthen its stock revenue base, the company will focus on increasing profitability from services like Lolipop! and Color Me Shop. Adapting to environmental changes and evolving user demands for creative expression, the company will provide high-value-added services with specialized functions for specific purposes. The dividend policy has been revised from 50% to over 65%.

Strengthening the Recurring Revenue Base and Expanding Business Domains

To achieve stable and sustainable growth, we will increase the proportion of recurring revenue. Our goal is to enhance corporate value over the medium term by "strengthening the recurring revenue base" and "expanding business domains," including existing services.

This diagram illustrates the composition of revenue, showing that the stock revenue ratio was 65.5% in 2024. The goal is to increase this ratio to over 70% by 2027. Through business expansion, the company aims to take on new challenges and introduce stock-based plans, generating stock revenue from new services. Additionally, efforts will be made to strengthen the stock revenue base by providing features and plans that align with customer needs, increasing corporate user adoption, and acquiring more high-value plan subscriptions.

Consolidated Net Sales and Operating Income Targets for 2025–2027

We aim to achieve consolidated net sales of 12.6 billion yen (CAGR 5.0%) and consolidated operating income of 1.26 billion yen (CAGR 15.0%) by driving business growth from 2025 to 2027, with a target date of December 31, 2027.

This graph illustrates the trends in revenue and operating profit, indicating the projected achievement of respective targets by 2027. Revenue is expected to reach 12.6 billion yen, with a compound annual growth rate (CAGR) of 5.0%. Meanwhile, operating profit is projected to grow to 1.26 billion yen, with a CAGR of 15.0%. These figures reflect the improvements and expansion from the current levels in 2022.

Recent Business Developments

Latest Financial Results

For more information about the expansion of our business please see the results presentation and update meeting materials.

Corporate value improvement and sustainability

ESG management and the SDGs (sustainability strategy)

GMO Pepabo has identified three material sustainability issues and contribute to ESG management and the SDGs through its business activities.

  • Consideration for the global environment and conservation of it through reduction of environmental impact
    • Target 12．Responsible consumption and production
  • Support for people from all walks of life to increase human output
    • Target 4．Quality education
    • Target 5．Gender equality
    • Target 8．Decent work and economic growth
    • Target 11．Sustainable cities and communities
  • Strengthening governance for sound and transparent corporate management
    • Target 16．Peace, justice and strong institutions
    • 目標17．Partnerships for the goals

Value Creation Model and Expanding Output

Guided by our corporate philosophy, “Make it more playful,” and our mission, we provide services that lower barriers to entry for creative expression. By empowering creators and supporting the growth of expressive activities, we foster an ecosystem that amplifies user-generated value. This approach enables us to sustainably enhance corporate value by expanding the economic sphere driven by creators and users, ultimately contributing to a more interesting and engaging society.

A diagram of the value creation process. It illustrates how the corporate philosophy, “Make things more interesting,” and the mission, “Increase humanity's output,” create value for society through business activities, addressing key ESG/SDG issues. This process contributes to the medium-term management plan and the sustainable enhancement of corporate value.

Group management strategies of GMO Internet Group

GMO Internet Group aims for group management through "decentralization of authority" and "creation of group synergy.

In other words, to adapt to the rapidly changing internet market, each company within the group selects its area of expertise, focuses its management resources on that area, aims to become No. 1, and operates independently.

Within the group, GMO Pepabo, Inc. is responsible for the E-commerce solution, Hosting and Domain business business.

And based on the shared and thorough implementation of "GMOism," which is the company's philosophy and principles within the GMO Internet Group, we are growing while creating group synergy.