DeNA Q1 FY2019 Operating Results

Key insights

6 takeaways

01
DeNA's Game Business segment reported year-on-year declines in both revenue and operating profit for Q1 FY2019, relying primarily on existing titles.See it on page 5
02
The company is launching 'Pokémon Masters' in summer 2019 across 8 languages, with DeNA handling full development, live operations, and distribution for the 3-on-3 real-time battle game.See it on page 7
03
The Sports business is projected to grow in both revenue and operating profit for FY2019, supported by record-speed attendance of 1 million cumulative visitors for the Yokohama DeNA BayStars.See it on page 8
04
The MOV automotive service demonstrated significant growth, with daily dispatch averages reaching 11.8x the base level of Q1 FY2018, following expansion into Osaka and Kyoto in July 2019.See it on page 10
05
DeNA's Healthcare segment launched a joint insurance product with MetLife Insurance in June 2019 that utilizes behavior change evidence from the 'kencom' platform, which currently serves 3 million members.See it on page 11
06
Consolidated financial results for FY2019 exclude performance from the E-commerce segment's Processing Settlement and Travel businesses following their transfer.See it on page 2

Summary

DeNA’s Q1 FY2019 operating results reflect a diversified corporate strategy spanning gaming, professional sports, automotive services, and healthcare. The company underwent a segment reorganization at the start of the fiscal year to better align its reporting with its core business pillars. Financial performance for the quarter was influenced by the divestiture of e-commerce assets, specifically the transfer of processing settlement and travel businesses, which are no longer reflected in consolidated results.

The gaming segment, while experiencing a year-on-year decline in revenue and operating profit, remains a primary focus through strategic partnerships. Key developments include the preparation for the summer 2019 launches of Mario Kart Tour and Pokémon Masters, the latter of which is slated for an eight-language international release. Conversely, the sports business demonstrated strong momentum, with the Yokohama DeNA BayStars achieving record-speed attendance milestones and benefiting from ongoing stadium infrastructure expansions.

Growth initiatives in the automotive sector are centered on the MOV taxi-dispatch service, which reported significant increases in daily dispatches across Tokyo and Kanagawa, alongside recent expansions into Osaka and Kyoto. Simultaneously, the healthcare division is leveraging behavioral data from its kencom platform to launch integrated insurance products. These results, finalized as of August 2019, highlight a transition toward high-growth service sectors while maintaining a stable foundation in established entertainment and sports properties. The company continues to monitor seasonal fluctuations, particularly within its sports segment, to manage consolidated financial outcomes effectively.