DeNA FY2021 Operating Results

Key insights

6 takeaways

01
DeNA’s total revenue fell 4% to 130.9 billion yen in FY2021, while operating profit dropped 49% to 11.5 billion yen due to declining performance in the legacy Game Business.See it on page 13
02
Free cash flow shifted from a positive 21.3 billion yen in the prior year to a negative 1.5 billion yen, though the company maintained a strong equity position of 244.9 billion yen as of March 31, 2022.See it on page 34
03
The Live Streaming segment emerged as a primary growth driver, recording a 43% year-over-year revenue increase.See it on page 13
04
The Healthcare division achieved its first full-year operating profit, supported by a data strategy focused on building a unified medical database through partnerships with Data Horizon and Medical Data Vision.See it on page 17
05
The company is pivoting toward a diversified business model by stabilizing its gaming segment through new titles and collaborations with Nintendo and Shueisha.See it on page 10
06
The Sports segment demonstrated resilience during the fiscal year, reporting improved financial performance and record-breaking stadium attendance.See it on page 4

Summary

DeNA’s fiscal year 2021 performance reflects a period of significant structural transition, characterized by a contraction in core gaming revenue offset by rapid expansion in emerging digital and social sectors. Total revenue declined by 4% to 130.9 billion yen, while operating profit experienced a sharp 49% decrease to 11.5 billion yen. This downturn was primarily driven by the Game Business, which struggled with a reliance on legacy titles, contributing to a shift in free cash flow from a positive 21.3 billion yen in the previous year to a negative 1.5 billion yen. Despite these financial headwinds, the company maintained a robust equity position of 244.9 billion yen as of March 31, 2022.

Strategic growth is increasingly concentrated in the Live Streaming, Healthcare, and Sports segments. The Live Streaming business emerged as a primary growth engine, recording a 43% year-over-year revenue increase. Simultaneously, the Healthcare division achieved its first full-year operating profit, bolstered by an aggressive data strategy aimed at establishing Japan’s largest unified medical database through partnerships with Data Horizon and Medical Data Vision. The Sports segment also demonstrated resilience, reporting improved performance and record-breaking stadium attendance.

Looking ahead, the company is prioritizing a balanced portfolio that integrates entertainment with social infrastructure. Future efforts focus on stabilizing the gaming segment through new title launches and strengthened collaborations with key partners like Nintendo and Shueisha. By leveraging its strong balance sheet to fund ongoing investments in health big data and global live streaming, the organization aims to evolve into a diversified technology firm. This shift underscores a deliberate move away from a singular focus on gaming toward a more sustainable, multi-sector business model within the Japanese market.