Summary of Key Questions and Answers: Operating Results Briefing for FY2018

Key insights

7 takeaways

01
DeNA is targeting a summer 2019 launch for Mario Kart Tour, with the current closed beta phase focused on gathering user feedback to improve game quality.See it on page 1
02
The company is developing multiple titles using globally popular IP, including a Pokémon title developed in collaboration with The Pokémon Company and a Slam Dunk title for the Chinese market.See it on page 3
03
FY2020 serves as a strategic checkpoint to demonstrate progress in new business areas like Automotive and Healthcare, rather than a target for immediate profit generation.See it on page 1
04
Profitability for the MOV automotive service is currently behind schedule due to aggressive promotional spending aimed at acquiring taxi operators to compete in the market.See it on page 2
05
DeNA maintains a consistent capital allocation strategy, utilizing profits from its Game and Sports businesses to fund growth while remaining open to debt financing for M&A opportunities.See it on page 3
06
The company has launched a new venture capital fund to diversify its methods for creating new businesses, moving beyond direct startup investment to broader internal and external business incubation.See it on page 3
07
Management intends to extend the lifecycle of existing games in stable or declining phases while selectively investing in user acquisition for titles with growth potential.See it on page 2

Summary

The fiscal year 2018 operating results briefing highlights DeNA’s strategic focus on balancing established revenue streams from its gaming and sports divisions with long-term investments in emerging sectors, specifically automotive and healthcare. The company identifies fiscal year 2020 as a critical milestone for demonstrating progress in these new business areas rather than immediate profitability. While the automotive sector, particularly the MOV taxi dispatch service, has faced slower-than-anticipated growth due to intense market competition and high acquisition costs for taxi operators, the company remains committed to achieving a leading market position by modernizing dispatch infrastructure.

Gaming operations remain a core pillar, with a dual strategy of extending the lifecycle of stable titles and aggressively marketing games with growth potential. The company is actively leveraging globally recognized intellectual property, including a collaboration with The Pokémon Company that originated from its existing partnership with Nintendo. Despite investor interest, specific details regarding the launch timing, monetization, and development roles for upcoming titles—such as the Pokémon project and Mario Kart Tour—remain confidential to maintain competitive positioning.

Capital allocation policies remain consistent, prioritizing growth investments and proactive M&A opportunities while utilizing share buybacks as a mechanism for returning value to shareholders. The company continues to explore diverse funding options, including debt financing, to support its expansion. Furthermore, the establishment of a new venture capital fund reflects a broader effort to diversify business creation strategies, allowing for more flexible investment in startups and internal innovation projects. These initiatives collectively underscore a transition period where the company is refining its operational focus to ensure long-term sustainability in the mid-2020s.