FY2014 Business Report

This business report details the financial performance and strategic pivot of mixi, Inc. for the fiscal year ending March 31, 2014. While the company experienced year-on-year declines in annual sales and income—reporting net sales of ¥12.1 billion and a net loss of ¥227 million—the fourth quarter marked a significant turnaround. Driven by the explosive success of the mobile game Monster Strike, fourth-quarter sales jumped 143.8% compared to the third quarter, returning the company to profitability.

The primary catalyst for this recovery was the Content segment, specifically Monster Strike, which surpassed 8 million users by June 2014. The game achieved the top sales ranking on the App Store following a nationwide television advertising campaign. Beyond gaming, the company optimized its Media segment by shifting from pure advertising to network advertising and removing login requirements for certain services to increase traffic. The Life Events segment also saw growth through the "nohana" photobook service and the acquisition of marriage support businesses like Diverse, Inc. and Confianza & Co., Inc.

Geographically, the company is focused on the Japanese market while aggressively expanding into Greater China. Following a May 2014 launch in Taiwan, mixi established a partnership with Tencent to enter China, Hong Kong, and Macau. Financially, the company strengthened its position by procuring ¥6.5 billion through a public stock offering, raising its equity ratio to 84.5%. Looking forward to FY2015, leadership has set ambitious targets of ¥40.0 billion in net sales and ¥10.0 billion in operating income, supported by a five-for-one stock split to enhance shareholder liquidity.