Summary of Key Questions and Answers: Q3 FY2025 Operating Results Briefing

Key insights

6 takeaways

01
The company is implementing a new dividend policy targeting a 3% dividend on equity (DOE) and is actively managing capital allocation to reach an 8% return on equity (ROE) goal.See it on page 2
02
Q4 FY2025 revenue and profit in the game segment are projected to decline due to the normalization of virtual currency spending following high-engagement anniversary events.See it on page 1
03
The company holds 20.7 billion yen in remaining goodwill tied to Allm Inc., its professional baseball business, and DATA HORIZON CO., LTD., with current efforts focused on reducing fixed costs for these units.See it on page 1
04
Starting in FY2025, the company will consolidate its operations into a new 'Sports & Smart City' segment to align with the March 2026 launch of the BASEGATE YOKOHAMA KANNAI facility.See it on page 2
05
Strategic focus for the Pokémon Trading Card Game Pocket is shifting from new user acquisition toward improving long-term retention and daily login frequency through live operations.See it on page 2
06
Structural reforms are underway across underperforming business units to address investor concerns regarding segment performance and long-term sustainability.See it on page 1

Summary

The Q3 FY2025 operating results briefing outlines the company’s current financial standing, strategic pivots, and future outlook across its diversified business segments. The primary objective of the session was to address investor concerns regarding goodwill impairment, segment performance, and capital allocation policies. The discussion highlights a transition toward structural reforms in underperforming units and a focus on long-term sustainability for key digital assets, specifically Pokémon Trading Card Game Pocket.

Financial performance in the game segment is projected to see a slight decline in revenue and profit for Q4 compared to Q3, attributed to the normalization of virtual currency consumption following high-engagement anniversary events. While new user acquisition for Pokémon Trading Card Game Pocket remains stable, the company is prioritizing retention and login frequency through enhanced live operations. Simultaneously, the company is managing 20.7 billion yen in remaining goodwill, primarily tied to Allm Inc., the professional baseball business, and DATA HORIZON CO., LTD., with active efforts underway to reduce fixed costs and refine growth plans for these entities.

The scope of operations spans digital gaming, sports management, and live entertainment, with a notable shift in reporting structure toward a combined Sports & Smart City segment starting in FY2025. This transition aligns with the upcoming launch of BASEGATE YOKOHAMA KANNAI in March 2026, which is expected to drive revenue through integrated sports and entertainment facilities. Furthermore, the company has adopted a new dividend policy targeting a dividend on equity (DOE) of approximately 3% and is actively evaluating capital allocation strategies to meet an 8% return on equity (ROE) target. Future updates regarding these capital management initiatives are expected within the current fiscal year.