DeNA Q2 FY2024 Operating Results

The operating results for the second quarter of fiscal year 2024 reflect a period of strategic portfolio management and operational adjustment across DeNA’s diversified business segments. Consolidated revenue for the first half of the fiscal year reached 70.3 billion yen, representing a 7% decline compared to the same period in the previous year. Despite this revenue contraction, the company achieved an operating profit of 5.5 billion yen, a 14% year-over-year increase, while Non-GAAP operating profit rose by 32% to 6.1 billion yen.

Performance across segments varied significantly. The Game Business, currently undergoing a major downsizing of its China operations, saw a 14% year-over-year revenue decline for the first half but achieved a substantial 463% increase in segment profit, totaling 2.4 billion yen. The Sports Business remained a key contributor, maintaining stable revenue and profit growth, bolstered by record-high stadium attendance and championship success for the Yokohama DeNA BayStars. Conversely, the Live Streaming Business faced challenges, with segment losses widening to 0.8 billion yen as the company balanced marketing investments for Pococha in Japan against a focus on long-term profitability. The Healthcare & Medical Business continued its developmental phase, with segment losses reaching 2.6 billion yen as the company invests in digital transformation and medical platform expansion.

The company maintains a cautious outlook, declining to provide a concrete full-year consolidated forecast due to the inherent volatility of the gaming market and the difficulty of predicting major title performance. However, the organization remains committed to its three-year strategic plan, which targets 15.0 billion yen in Non-GAAP operating profit by fiscal year 2026. Management is prioritizing capital efficiency and the establishment of structural growth foundations across its core segments, including the recent global launch of the Pokémon Trading Card Game Pocket, which serves as a significant recent development for the gaming portfolio.