DeNA Consolidated Financial Results for the Fiscal Year Ended March 31, 2015

Key insights

7 takeaways

01
DeNA reported a significant financial downturn for the fiscal year ended March 31, 2015, with total revenue falling 21.5% to 142.4 billion yen and operating profit dropping 53.4% to 24.8 billion yen.See it on page 1
02
The company’s primary revenue decline was driven by a 25.9% decrease in its social media business, caused by the waning performance of legacy game titles.See it on page 6
03
In March 2015, DeNA finalized a strategic capital and business alliance with Nintendo involving a reciprocal exchange of treasury stock valued at approximately 22 billion yen.See it on page 33
04
Profit attributable to owners of the parent fell to 15.0 billion yen, less than half of the 31.7 billion yen recorded in the previous fiscal year.See it on page 24
05
DeNA is pivoting toward a diversification strategy that includes expansion into healthcare, curation platforms, and e-commerce to offset core gaming volatility.See it on page 19
06
Management has declined to provide full-year financial forecasts for the upcoming period, citing market volatility and the unpredictable nature of user preferences.See it on page 7
07
While the company maintains a solid financial position with total assets of 218.5 billion yen, future growth depends on mitigating risks related to intense industry competition and rapid technological change.See it on page 8

Summary

DeNA experienced a period of significant financial contraction during the fiscal year ended March 31, 2015, as the company navigated a challenging transition in its core business segments. Total revenue declined by 21.5 percent to 142.4 billion yen, while operating profit fell by 53.4 percent to 24.8 billion yen. This downturn was largely attributed to a 25.9 percent revenue decrease in the social media business, where the company struggled to sustain performance as usage of legacy game titles waned. Consequently, profit attributable to owners of the parent dropped to 15.0 billion yen, down from 31.7 billion yen in the previous fiscal year.

In response to these headwinds, the company is pivoting toward a strategy centered on long-term diversification and high-value partnerships. A cornerstone of this effort is the strategic capital and business alliance with Nintendo, finalized in March 2015, which involved a reciprocal exchange of treasury stock valued at approximately 22 billion yen. Beyond gaming, the company is aggressively expanding into healthcare, curation platforms, and e-commerce. These initiatives are supported by a commitment to robust corporate governance, enhanced data security, and the recruitment of specialized talent to facilitate international growth.

Despite maintaining a solid financial position with total assets of 218.5 billion yen, the company has opted not to provide full-year financial forecasts for the upcoming period, citing market volatility and the unpredictable nature of user preferences. Operational risks remain a primary concern, including intense industry competition, the rapid pace of technological change, and complex regulatory requirements across its diverse business domains. Success in the future will depend on the company’s ability to mitigate these risks while effectively leveraging intellectual property and key performance indicators, such as user retention and average revenue per user, to stabilize and grow its earnings base.