DeNA Q1 FY2010 Operating Results

DeNA achieved record-breaking financial performance in the first quarter of fiscal year 2010, driven primarily by the rapid expansion of its social gaming ecosystem. Net sales reached 24,193 million yen, representing a 175 percent increase year-over-year, while operating income surged 282 percent to 11,989 million yen. This growth was fueled by significant contributions from social game item billings and the successful implementation of aggressive promotional activities, including increased television advertising.

The company’s operational focus centered on the Moba-ge Open Platform, which saw substantial growth in user activity and monetization. By the end of July 2010, the platform supported 350 game titles from 154 partner companies. In-house game development also remained a key pillar, with new titles such as Sengoku Royale and Aqua Square contributing to revenue. The platform’s reach expanded to approximately 19.93 million unique users by June 30, 2010, supported by a strategic shift toward cross-device and cross-border development, including initiatives for smartphones and international markets.

While the social media segment served as the primary engine for growth, the company also maintained its e-commerce operations, which included auction services and settlement platforms like Paygent. Despite the strong performance, management noted that the social gaming market remains highly volatile and subject to rapid change. Consequently, the company adopted a strategy of providing quarterly forecasts rather than long-term projections to better reflect the evolving nature of the industry. Future growth strategies emphasize continued investment in the Incubate Fund to foster market expansion and the pursuit of mergers and acquisitions to solidify the company's position as a global leader in social gaming.