DeNA FY2017 Operating Results

Key insights

6 takeaways

01
DeNA reported FY2017 revenue of 139.4 billion yen, a 3% year-on-year decline, with a non-GAAP operating profit of 18.1 billion yen.See it on page 6
02
The core game business remains the primary revenue driver, bolstered by increased virtual currency consumption from first-party titles and partnerships like Nintendo, though segment operating profit fell to 25.1 billion yen due to higher marketing and fixed costs.See it on page 8
03
For FY2018, the company projects revenue of 150 billion yen and an operating profit of 15.5 billion yen.See it on page 28
04
The sports business has matured into a consistent profit-generating segment, with plans to increase Yokohama Stadium capacity by 2020 to support attendance growth.See it on page 10
05
Strategic investment is shifting toward emerging sectors, including the scaling of the TaxiBell taxi dispatch application and expansion in the social live streaming market.See it on page 21
06
The company aims to establish sustainable, diversified business pillars by 2020 by leveraging internet and AI technologies across sectors like automotive mobility and wellness-integrated insurance.See it on page 22

Summary

DeNA’s fiscal year 2017 operating results reflect a period of strategic transition, characterized by growth in virtual currency consumption within the core game business alongside increased investment in new business pillars. While total revenue for the fiscal year reached 139.4 billion yen, representing a 3% year-on-year decline, the company maintained a focus on long-term expansion through proactive initiatives in sports, automotive mobility, and social live streaming. Operating profit for the year was reported at 27.5 billion yen, though this figure was bolstered by non-recurring items, leading to a more conservative non-GAAP operating profit of 18.1 billion yen.

The game business remains the company’s primary revenue driver, with virtual currency consumption rising due to the performance of first- and second-party applications and partnerships, such as those with Nintendo. However, segment operating profit declined to 25.1 billion yen, impacted by rising fixed costs and marketing expenditures. Conversely, the sports business has successfully matured into a consistent profit-generating segment, with plans to expand Yokohama Stadium capacity by 2020 to further capitalize on attendance growth.

Looking toward fiscal year 2018, the company has shifted to full-year financial guidance, projecting revenue of 150 billion yen and an operating profit of 15.5 billion yen. Strategic priorities include stabilizing the profitability of the core game business while aggressively investing in emerging sectors. Specifically, the company is scaling its taxi dispatch application, TaxiBell, developing wellness-integrated insurance products, and expanding its leadership in the social live streaming market. These efforts are part of a broader, long-term vision to leverage internet and AI technologies to create sustainable, diversified business pillars by 2020.