Financialmixi
Consolidated Financial Results for the Fiscal Year Ended March 31, 2020
1 May 202025 pages~47 min full read
Mixi Group's fiscal year 2020 net sales fell 22.1% to ¥112,171 million, while profit attributable to owners of the parent dropped 59.6% to ¥10,724 million.
See it on page 22The Entertainment Business drove the downturn, with segment revenue declining from ¥138,605 million to ¥107,216 million, resulting in basic earnings per share falling to ¥142.33.
See it on page 22The company is aggressively diversifying through inorganic growth, spending ¥30.7 billion on investing activities including the acquisitions of Chariloto Co., Ltd. and Net Dreamers Co., Ltd.
See it on page 21The acquisition of Net Dreamers Co., Ltd. cost ¥15 billion, contributing to a total unamortized goodwill balance of ¥17,315 million.
See it on page 21Despite operational declines, the company maintains a stable capital base with a 90% equity ratio and ¥125.4 billion in cash and cash equivalents.
See it on page 1Fiscal year 2021 projections anticipate further contraction, with net sales expected to fall to ¥100,000 million and profits to drop to ¥6,500 million.
See it on page 2The company maintains a steady dividend policy of ¥115 to ¥120 per share while shifting its strategic focus toward sports media and professional team management.
See it on page 2Mixi Group experienced a period of significant financial contraction and strategic transition during the fiscal year ended March 31, 2020. Net sales fell by 22.1% to ¥112,171 million, while profit attributable to owners of the parent plummeted by 59.6% to ¥10,724 million. This downturn was primarily driven by the Entertainment Business, where revenue dropped from ¥138,605 million to ¥107,216 million, causing basic earnings per share to decline from ¥350.26 to ¥142.33. Despite these challenges, the organization maintained a robust equity ratio of 90% and held ¥180,938 million in total net assets, signaling a stable capital base amidst declining operational performance.
The fiscal year was characterized by aggressive inorganic growth and diversification within the Japanese market, which accounts for over 90% of total sales and assets. Cash outflows for investing activities rose sharply to ¥30.7 billion, largely due to the acquisition of subsidiaries such as Chariloto Co., Ltd. and Net Dreamers Co., Ltd. The latter acquisition alone accounted for ¥15 billion, contributing to a substantial increase in unamortized goodwill, which reached ¥17,315 million. These investments reflect a strategic pivot toward integrating sports media and professional team management into the core portfolio, even as impairment losses were recorded in underperforming entertainment retail segments.
Looking toward the 2021 fiscal year, projections indicate continued pressure on the bottom line, with net sales expected to contract further to ¥100,000 million and profits forecasted to drop to ¥6,500 million. Cash and cash equivalents decreased by ¥19 billion during the period to end at ¥125.4 billion, yet the dividend policy remained steady at ¥115 to ¥120 per share. This financial trajectory highlights a company utilizing its significant cash reserves to fund a structural shift toward new lifestyle and entertainment segments while managing the diminishing returns of its legacy business lines.
