DeNA Consolidated Financial Results for the Six Months Ended September 30, 2018

DeNA’s consolidated financial results for the six months ended September 30, 2018, reflect a period of contraction in revenue and operating profit, primarily driven by performance declines in the core Game Business. Total revenue for the six-month period reached 68,215 million yen, representing a 7.0% decrease compared to the same period in the previous year. Operating profit fell 21.9% to 10,674 million yen, while profit attributable to owners of the parent declined 6.6% to 9,666 million yen.

The company’s performance was segmented across four primary areas. The Game Business, the group’s largest segment, saw revenue drop 12.3% to 42,715 million yen due to lower virtual currency consumption, though the company actively pursued cost-optimization measures. The E-commerce Business reported revenue of 6,081 million yen, a 24.0% decline largely attributed to the divestiture of DeNA Travel Co., Ltd. in May 2018. Conversely, the Sports Business demonstrated strong growth, with revenue increasing 17.1% to 14,612 million yen, bolstered by high stadium attendance for the Yokohama DeNA Baystars. The New Businesses and Others segment continued to incur losses as the company prioritized long-term growth investments in automotive, healthcare, and incubation services.

Financial position remained stable, with an equity ratio of 80.2% as of September 30, 2018. Cash and cash equivalents increased to 106,595 million yen, supported by 13,830 million yen in net cash provided by operating activities. The company maintained its previously announced full-year financial forecast for the fiscal year ending March 31, 2019, targeting 150,000 million yen in revenue. These results were prepared in accordance with International Financial Reporting Standards (IFRS), with the company adopting new standards for financial instruments and revenue recognition during the period.