Consolidated Financial Results for the Fiscal Year Ended March 31, 2019

Mixi, Inc. experienced a significant contraction during the fiscal year ended March 31, 2019, characterized by a 23.8% decline in net sales to ¥144,032 million and a 36.5% drop in profit attributable to owners to ¥26,521 million. Operating income fell by 43.3%, largely due to a downturn in the core Entertainment Business, which includes the flagship title Monster Strike. This downward trend is expected to persist, with forecasts predicting a further 30.6% decrease in net sales for the upcoming fiscal year. Despite these challenges, the firm maintains a robust financial foundation, evidenced by a 92.9% equity ratio and a commitment to shareholder returns through ¥120 per share in dividends and ¥10.1 billion in treasury share purchases.

Strategic restructuring defined the period as the organization sought to pivot away from underperforming assets and toward new growth sectors. The company divested from subsidiaries Diverse, Inc. and nohana, Inc., withdrew from its telecommunications-related business, and absorbed the impact of closing the Ticket Camp service, which involved a substantial extraordinary loss. To diversify its portfolio, the firm acquired Chariloto Co., Ltd. for ¥5,000 million, signaling an expansion into sports entertainment and the keirin betting market. This shift was accompanied by a reclassification of reporting segments into Entertainment and Lifestyle to better align with long-term digital service goals.

Cash flow dynamics reflected the broader operational slowdown, with net cash from operating activities falling from ¥49,975 million to ¥18,113 million. While basic earnings per share decreased from ¥533.48 to ¥350.26, net assets per share grew to ¥2,368.05. The organization enters the next fiscal cycle with a focus on stabilizing its core gaming assets while integrating new sports-related acquisitions to offset the volatility of its traditional entertainment offerings.