Financialmixi
Consolidated Financial Results for the Three Months Ended June 30, 2019
1 Aug 201910 pages~16 min full read
Mixi, Inc. experienced a significant Q1 fiscal 2020 downturn, with net sales dropping 39.9% to ¥20,780 million and operating income falling 85.2% to ¥1,637 million compared to the previous year.
The Entertainment Business segment was the primary driver of the decline, with revenue contracting from ¥32,709 million to ¥19,969 million year-over-year.
The company projects a difficult full fiscal year, forecasting a 30.6% decline in net sales to ¥100,000 million and an 88.7% drop in profit to ¥3,000 million.
Despite operational losses, the company maintains a strong balance sheet with ¥138,393 million in cash and deposits and a high equity ratio of 93.8%.
Mixi acquired SFIDANTE Inc. for ¥1,599 million in Q1 to integrate smartphone-photo print services into its 'FamilyAlbum' app, resulting in ¥1,504 million of provisional goodwill.
The Lifestyle Business segment underperformed during the quarter, recording a segment loss of ¥272 million.
To align leadership with shareholder interests during this period of decline, the company authorized the issuance of over 400,000 stock options to directors and corporate officers in July 2019.
This financial report details the consolidated results for mixi, Inc. during the first quarter of the fiscal year ending March 31, 2020, covering the period from April 1, 2019, to June 30, 2019. The data reveals a significant year-over-year downturn across all primary financial metrics. Net sales fell by 39.9% to ¥20,780 million, while operating income saw a sharp decline of 85.2%, dropping to ¥1,637 million. Profit attributable to owners of the parent followed a similar trajectory, decreasing 84.4% to ¥1,134 million.
The downturn is primarily driven by the Entertainment Business segment, which saw sales contract from ¥32,709 million in the previous year's first quarter to ¥19,969 million. The Lifestyle Business also experienced a decline in revenue and recorded a segment loss of ¥272 million. Despite these operational challenges, the company maintains a robust financial position with total assets of ¥186,409 million and a high equity ratio of 93.8%. Cash and deposits remain substantial at ¥138,393 million, though this represents a decrease from the previous fiscal year-end.
A key strategic development during this period was the 100% acquisition of SFIDANTE Inc. for ¥1,599 million. This move aims to integrate SFIDANTE’s smartphone-photo print services with mixi’s "FamilyAlbum" app to enhance family-oriented communication offerings. The acquisition resulted in the recognition of approximately ¥1,504 million in provisional goodwill.
Looking ahead, the full-year forecast remains cautious, projecting net sales of ¥100,000 million and a profit of ¥3,000 million, representing anticipated annual declines of 30.6% and 88.7%, respectively. To align leadership interests with shareholder value during this transition, the company also authorized the granting of over 400,000 stock options to directors and corporate officers in July 2019.
