DeNA Q4 FY2012 Earnings Results Briefing: Q&A Summary

The DeNA Q4 FY2012 earnings briefing summary outlines the company’s strategic pivot toward increasing its volume of first- and second-party game releases to revitalize growth. Following a fiscal year characterized by a lack of major internal hits and fluctuating MobaCoin consumption, management intends to accelerate title production to approximately two games per month starting in the summer of 2013. This expansion targets both browser and native app markets, with a focus on leveraging the company’s core strength in game operations and cross-promotion to drive user engagement.

The company maintains a platform-agnostic approach, viewing both HTML5-based browser games and native apps as viable long-term opportunities. While acknowledging the competitive challenges of the app store ecosystem, leadership emphasizes that the Mobage platform provides a distinct advantage for user acquisition and retention. Despite recent domestic performance headwinds, the company remains optimistic about the broader mobile gaming market, citing the massive scale of recent industry-wide hits as evidence of sustained sector growth.

Regarding international operations, the company is prioritizing sustainable growth for Mobage West over immediate profitability, aiming to scale the business through a robust pipeline of new titles. Financially, the company reports a strong cash position of 67.3 billion yen as of March 2013. While management remains open to share buybacks as a method of returning capital to shareholders, the primary focus remains on proactive investment in new business opportunities and service development to ensure mid- to long-term expansion. The company expects domestic MobaCoin consumption to stabilize and potentially recover as the new content strategy takes effect in the latter half of 2013.