Latest Tokyo Brief coverage on GMO Commerce,Inc., tracking filings, financial news, and market signals from Japan.
TSE:410A
Buying two sibling marketing companies for ¥3.61bn has pushed GMO Commerce's sales guidance up 68.5%, but goodwill amortisation and new borrowing costs mean forecast net profit rises only 2.8%, even as a fixed payout formula still points to a higher dividend forecast.
After agreeing to buy GMO Digital Lab for ¥700 million, plus a potential earn-out of up to ¥100 million, the company moved its dividend rule to consolidated accounts and nudged its year-end payout forecast to ¥50.56 from ¥48.24. The revised group outlook adds far more revenue than net profit, because a matching ¥700 million bank loan helps fund the deal and drags interest costs into the picture.