DeNA Consolidated Financial Results for the Fiscal Year Ended March 31, 2013

Key insights

7 takeaways

01
DeNA posted record results for the fiscal year ended March 31, 2013, with revenue of 202,467 million yen (+38.2% year-on-year) and profit attributable to owners of the parent of 45,581 million yen (+46.4%), extending growth to nine consecutive years.See it on page 7
02
The Social Media Business drove the growth, generating 179,627 million yen in external revenue, roughly 89% of total revenue.See it on page 7
03
Growth was helped by the successful shift to smartphone-based services and higher MobaCoin consumption in both domestic and international markets.See it on page 6
04
Management has set a target of 200 billion yen in operating profit by fiscal year 2015.See it on page 23
05
Citing volatility and fast-changing user preferences in global social gaming, DeNA gives only quarterly guidance rather than full-year forecasts.See it on page 7
06
To diversify its game portfolio, the company is pursuing strategic alliances and drawing on international development expertise.See it on page 13
07
DeNA raised its cash dividend to 50 yen per share and plans flexible capital management including share buybacks.See it on page 9

Summary

DeNA achieved record-breaking financial performance for the fiscal year ending March 31, 2013, marking nine consecutive years of growth. Revenue reached 202,467 million yen, representing a 38.2 percent year-on-year increase, while profit attributable to owners of the parent rose by 46.4 percent to 45,581 million yen. This expansion was primarily fueled by the robust performance of the Social Media Business, which generated 179,627 million yen in external revenue. The transition to International Financial Reporting Standards during this period provided a standardized framework for reporting these gains, which were further bolstered by the successful shift toward smartphone-based services and increased MobaCoin consumption across domestic and international markets.

To sustain this momentum, the company is prioritizing the diversification of its game portfolio through strategic alliances and international development expertise. While management has set an ambitious target of 200 billion yen in operating profit by fiscal year 2015, it has adopted a cautious approach to forecasting, providing only quarterly guidance to account for the inherent volatility and rapid shifts in user preferences within the global social gaming sector. Shareholder value remains a central focus, evidenced by an increased cash dividend of 50 yen per share and a commitment to flexible capital management through share buybacks.

Operating in a complex global environment, the company faces significant risks related to regulatory compliance, cybersecurity, and the integration of international acquisitions. To mitigate these threats, substantial investments are being directed toward strengthening internal controls, governance, and site integrity. By adhering to rigorous accounting policies regarding revenue recognition, asset valuation, and foreign currency translation, the organization aims to navigate the legal and systemic challenges of the mobile internet industry while scaling its operations to maintain its position as a global leader in mobile services.