CEO Comment Volume 39, 2008.11
Special Dividend Commemorating Group Reorganization and Progress of Business
Expressing our gratitude to shareholders and hoping for your continued support
We declared the first dividend commemorating the business integration (five companies including ECONTEXT, Inc.) following the restructuring of the DG Group, based on the approval granted at the extraordinary board meeting on November 20, 2008. (The year-end dividend is yet to be decided, but continues to be discussed.) [Notice of Business Merger Commemorative Dividend (First Payment) (PDF)]
We integrated ECONTEXT, Inc., DG&Ibex, Inc., Creative Garage, Inc. and DG Media Marketing, Inc., calling ourselves a "Hybrid Solution Partner." As the initial effort after the integration, we started the Microsoft online store "Microsoft Store" on the 18th.
Please refer to [Recent Digital Garage Group news: Microsoft Entrusts Operation of Its Online "Microsoft Store" to Digital Garage (PDF)] for details.
Reflecting concerns over the economic recession in recent months, we have been asked for advice on the "shift from flow-style advertisements to stock-style solutions" by a variety of enterprises.
"Hybrid Solution Partner DG," which provides seamless IT x Promotion x Settlement solutions, has also gotten off to a good start.
Integrated Advertisement with the Nikkei Shimbun
In respect to the portal/weblog segment, Kakaku.com, Inc., a subsidiary of Digital Garage, Inc., has been expanding its business to a greater-than-expected scale. This expansion is even more remarkable since the constant flood of news regarding the subprime crisis. Consumers are becoming more active in respect to "smarter consumption," which is evident from the fact that traffic is expanding in the general merchandise area, which includes food and daily necessities, not only in major categories on Kakaku.com such as PCs and home electronics.
【Present Situation of Kakaku.com】
As of the end of October 2008, the
number of unique users of "Kakaku.com" reached 14,890,000, an
increase of 4,070,000 from the previous year, while those
of the "Kakaku.com Group" reached 26,820,000, an increase of 8,210,000.
The figures significantly exceeded forecasts.
Consequently, "Kakaku.com" was ranked "28th," its highest
ranking ever, at the end of October in the Japanese Internet site rankings by
number of unique users compiled by NetRatings. Kakaku.com is establishing its
position as one of the leading Internet media companies in Japan.
The spectacular growth of Kakaku.com was the result of continued efforts to
maintain the company mission of the "creation of new user-oriented purchase
support services," which has resulted in the recovery of customer trust
and patronage. This was realized through the maximum support provided by the
DG Group since May 2005, when we were forced to "close the site" due
to an Internet attack.
The business expansion of the DG Group was made possible by each of the shareholders
of Digital Garage who have extended their mid- and long-term support, not to
mention the executives and regular employees of the companies in the group.
We would like to take this opportunity of the second inauguration of business
by Digital Garage, the operating holding company, to express our deepest gratitude.
Although the economic situation is unpredictable, we are determined to make
every effort to contribute to society through our business.
We would appreciate your continued support of the DG Group and Digital Garage.
