Further to an earlier announcement about GMO Internet Inc. (TYO:9449) selling a 9.6% stake in GMO Click Holdings Inc (TYO:7177) to Daiwa Securities Group Inc (TYO:8601), the Japanese online services giant said it expects to generate extraordinary profit from the deal and revised upwards its earnings and dividend guidances for the full year.
GMO Internet estimates that the deal with Daiwa will generate an extraordinary gain on sale of affiliated company stock of JPY 7.5 billion ($62.3 million). For this reason, and also in line with the robust performance of the company, the company is reviewing its full-year earnings outlook.
For the year from January 1, 2015 to December 31, 2015, the company now expects net profit attributable to GMO Internet to be JPY 13 billion, up 44.4% from previously guided JPY 9 billion.
The net profit per share is now expected to be JPY 110.35, up from previously forecast JPY 76.39.
Given the revised earnings forecast for the fiscal year, GMO has decided to increase the fourth quarter dividend forecast by JPY 11.00 to JPY 19.00. As a result the annual dividend forecast is revised from JPY 26.00 to JPY 37.00. This payout ration (33.5%) is in tune with GMO’s policy objective to distribute 33% of consolidated net profit in dividend payouts.
To view the official announcement on the profit forecast revision, click here.