DeNA Q2 FY2018 Earnings Results: Summary of Key Questions and Answers

This summary outlines the key strategic discussions from DeNA’s Q2 FY2018 earnings briefing, held on November 8, 2018. The session focused on the company’s efforts to stabilize its core gaming business, expand its international partnerships, and scale emerging ventures in the automotive and sports sectors.

In the gaming segment, management addressed a decline in virtual currency consumption, emphasizing a dual strategy of cost optimization—specifically regarding infrastructure and quality assurance—and a renewed focus on marketing to broaden the user base for established titles like Megido 72. To combat the difficulty of producing hits in a competitive market, the company is prioritizing partnerships with major intellectual property holders and importing successful international titles, such as the MOBA game Arena of Valor, developed in collaboration with Tencent Games. While acknowledging the rise of Chinese-developed titles in Japan, leadership maintained that Japanese IP remains a dominant force and that the company’s long-standing relationships with IP holders provide a significant competitive advantage.

Beyond gaming, the company provided updates on its diversification efforts. The TaxiBell ride-hailing service is scaling in Tokyo with approximately 4,000 vehicles, with future investment levels contingent on the competitive landscape. The company aims to leverage AI to improve taxi productivity and replicate the service density achieved in Kanagawa Prefecture. Additionally, the sports business continues to grow revenue per customer through dynamic ticket pricing and expanded media distribution, while the healthcare division is targeting 2021 for the practical implementation of new medical checkup systems. Overall, the company remains focused on balancing operational efficiency with strategic investments to drive long-term growth across its diverse business portfolio.