DeNA Fiscal 2010 Q4 Results Briefing: Q&A Summary

The fiscal 2010 fourth-quarter results briefing outlines a strategic pivot toward global expansion and smartphone integration, setting the stage for long-term growth targets. The primary objective is to transition the company’s successful domestic social gaming model, centered on the Mobage platform, into a global entity while simultaneously migrating the user base from feature phones to smartphones. This transition is viewed as a critical investment phase, with management prioritizing platform stability and community building over immediate short-term revenue spikes in international markets.

Key operational data highlights the success of the open platform strategy, evidenced by a substantial increase in Moba-coin consumption driven by both in-house and third-party developers. While the first quarter of fiscal 2011 forecasts conservative growth, management maintains confidence in reaching annual targets. Notably, early data from users migrating to smartphones indicates that engagement metrics, such as repeat ratios and average revenue per user, remain consistent with those of feature phone users, defying initial expectations of a decline.

The company’s international strategy involves leveraging the ngmoco acquisition to integrate advanced graphics and action-oriented gameplay with established social networking mechanics. Marketing efforts in the United States and China will focus on cost-per-installation advertising and strategic alliances with handset manufacturers and telecom carriers. Looking toward fiscal 2014, the company projects a significant shift in its revenue composition, anticipating that smartphone-based services will dominate, while feature phone revenue will decline to approximately 10%. The long-term financial roadmap emphasizes item-based billing over advertising revenue, with a goal of achieving 200 billion yen in operating income by fiscal 2014 through a diversified ecosystem spanning mobile, PC, and global markets.