RIX CORPORATION Q2 FY2025 earnings call

• Company Background
  • GMO TECH HD was formed in October 2025 via the merger of GMO TECH (which offers MEO/SEO customer acquisition support services) and Design One Japan (operator of the Ekiten store review platform).
  • The company recently completed the full acquisition of Try Hatch, turning it into a wholly owned subsidiary.
• Market Tailwinds
  • Domestic monthly Google Maps users in Japan reach approximately 47 million people, more than half of all smartphone owners in the country. Map-based search for nearby stores and properties has become mainstream, driving rising demand for map-based customer acquisition among stores and real estate management companies.
• Business Model Characteristics
  • Both core businesses operate as stable recurring (stock-based) SaaS models, with the MEO tool MEO Dashboard byGMO and PropTech solution GMO Chintai DX, both holding low churn rates.
• Synergy Expectations
  • The MEO business can leverage scale benefits from integration with the GMO Internet Group's advertising infrastructure. The company is actively analyzing expected synergies between MEO and real estate DX operations.

1. MEO Business: For the second quarter of the 2025 December period (pre-merger GMO TECH figures), revenue increased 41% year-over-year. Within this segment, affiliate performance-based advertising makes up approximately 50% of the segment's revenue contribution, with half of affiliate revenue coming from overseas advertisers. 2. PropTech (Real Estate Tech) Business: This segment operates the GMO Chintai DX series of SaaS products for rental property management. As of the end of October 2025, the segment has over 300,000 active property owner users for its owner application, reaching a scale of hundreds of thousands of users. This is a stable recurring revenue business with a churn rate of around 1%.

• The company maintains a 2025 December period full-year dividend forecast of 221.07 yen per share, for a current dividend yield of approximately 4.5%, an attractive yield for long-term investors.
• For the 2026 to 2028 medium-term management plan, the company's core strategy is to expand recurring revenue focused on its MEO and real estate tech businesses, with the goal of improving operating profit margin through merger synergies and cost efficiency gains.
• Management expects long-term growth from leveraging cross-utilization of map data and real estate data across its two core SaaS business lines.

• The MEO business' affiliate advertising segment is exposed to volatility from exchange rate fluctuations and changes in the global advertising market conditions.
• Short-term earnings performance may be pressured by post-merger integration costs and the cyclicality of the affiliate advertising market.
• No additional operational risks or failures were discussed in the provided transcript.

There is no formal question and answer section included in the provided transcript.