GMO Internet Group posted a 38.7% jump in net income for the first half of 2025, driven largely by robust payment processing demand and the absence of hefty bad debt charges that weighed on results a year earlier.
The Tokyo-based internet services provider reported net income of ¥10.7 billion ($72.4 million) for the six months ended June, compared with ¥7.7 billion in the same period last year. Revenue climbed 4.4% to ¥142.6 billion ($963.5 million), while operating profit surged 24% to ¥29.8 billion ($201.4 million).
The financial turnaround reflects GMO’s recovery from troubles at its Thai securities unit, which required ¥4.5 billion in bad debt provisions during the first half of 2024. Those charges are now absent from current results, providing a significant tailwind to the internet finance division’s performance.
GMO’s core internet infrastructure business, which includes domain registration and cloud services, generated ¥85.4 billion in revenue, up 5.9% year-over-year. The division benefited from accelerating cashless payment adoption across Japan’s retail sector.
However, growth remains uneven across GMO’s portfolio. The internet security unit saw operating profit plunge 78.1% despite a 9.6% revenue increase, as heightened engineer hiring and system investments crimped margins. The advertising and media division also struggled, with both revenue and profit declining compared to last year.
GMO’s cryptocurrency operations posted a 4.8% revenue decline to ¥3.9 billion, while operating profit dropped 28.8% as digital asset trading volumes remained subdued. The company’s nascent incubation business reported an operating loss of ¥704 million.
