DeNA Q1 FY2013 Operating Results

Key insights

7 takeaways

01
DeNA reported Q1 FY2013 revenue of 52.2 billion yen, a 10% increase year-over-year, while operating profit declined 8% year-over-year to 17.0 billion yen.See it on page 17
02
Mobage West achieved monthly profitability in June 2013, contributing to a total international MobaCoin consumption of approximately 80 million USD for the quarter.See it on page 10
03
DeNA plans to launch roughly 60 new app- and browser-based titles in Japan and over 20 new app-based titles in the West during fiscal year 2013 to drive growth.See it on page 8
04
MobaCoin consumption in Japan reached 54.8 billion yen, with smartphone-based consumption continuing to grow quarter-over-quarter.See it on page 5
05
The company is leveraging Western IP, such as Marvel and Transformers, combined with Japanese game mechanics to scale its international mobile app pipeline.See it on page 12
06
The e-commerce segment generated 4.3 billion yen in revenue, with DeNA Shopping transaction volume reaching 10.5 billion yen, 65% of which originated from smartphones.See it on page 14
07
Consolidated financial guidance for Q2 FY2013 projects revenue of 50.9 billion yen and an operating profit of 16.7 billion yen.See it on page 17

Summary

DeNA’s operating results for the first quarter of fiscal year 2013 reflect a period of strategic transition, characterized by stable revenue and a focus on expanding the company’s native mobile application pipeline. The company reported quarterly revenue of 52.2 billion yen, representing a 10% year-over-year increase, while operating profit reached 17.0 billion yen, an 8% decline compared to the same period in the previous year. This performance highlights the company’s ongoing efforts to balance aggressive investment in new game development with the maintenance of its established browser-based social gaming platform.

The core of the company’s growth strategy involves a significant expansion of its game portfolio, with plans to launch approximately 60 new titles in Japan and over 20 new app-based titles internationally during the fiscal year. In Japan, the company continues to rely on the strong performance of its browser-based titles while pivoting toward the native app market to capture emerging casual gaming segments. Internationally, the Mobage West platform achieved profitability in June 2013, driven by the success of titles utilizing Western intellectual property combined with established Japanese game mechanics.

The company’s e-commerce segment also showed growth, with revenue reaching 4.3 billion yen, an 11% year-over-year increase. This segment is increasingly focused on strategic partnerships and the optimization of its travel and shopping services, with a significant portion of transaction volume now originating from smartphones. Despite the challenges of rising commission fees and increased outsourcing costs associated with global expansion, the company maintains a positive outlook, projecting continued growth in its international business and a commitment to evolving into a leading global mobile internet company.