Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

Mixi, Inc. experienced a period of transition during the fiscal year ended March 31, 2022, characterized by stable net sales of ¥118,099 million but a significant 34.6% decline in net profit to ¥10,262 million. This contraction in profitability stemmed from increased operating costs, substantial impairment losses in the Sports segment—specifically regarding the PIST6 business—and a ¥2,098 million loss on the valuation of investment securities. Cash reserves also saw a marked decrease, falling by ¥31.3 billion to ¥118.4 billion, as the company prioritized aggressive capital allocation toward treasury share purchases and strategic acquisitions.

The Digital Entertainment segment continues to serve as the primary economic engine, generating ¥91.2 billion in revenue. Performance in this sector was heavily influenced by the flagship title Monster Strike and the adoption of new revenue recognition standards that defer income based on the estimated period of character utility. While the Sports and Lifestyle segments achieved year-over-year revenue growth, both remained unprofitable at the operating level. To address these imbalances and diversify its portfolio, the company completed the acquisition of TOKYO FOOTBALL CLUB Co., Ltd. and Lovegraph Inc., signaling a long-term commitment to expanding its footprint in professional sports and family-oriented digital services.

Looking toward the 2023 fiscal year, the financial outlook remains cautious. Although net sales are projected to rise slightly by 1.6%, profit attributable to owners is expected to fall by an additional 51.3% to ¥5,000 million. This forecast reflects ongoing investment requirements and a structural reorganization of reporting segments, which will introduce a dedicated Investment category. These shifts indicate a strategic pivot toward balancing the mature cash flows of the gaming division with high-growth, capital-intensive ventures in broader entertainment and sports markets.