Mixi FY2013 Third-Quarter Earnings Result Briefing Session

The fiscal year 2013 third-quarter earnings briefing for mixi, Inc. details a strategic pivot toward native mobile gaming and business revitalization, marking a transition from structural losses to profitability. The primary thesis centers on the successful launch and rapid adoption of the mobile game Monster Strike, which served as the catalyst for upward revisions to the company’s full-year earnings projections. Following a period of consistent sales decline that began in the first quarter of fiscal year 2012, the company reported a turnaround in the third quarter of 2013, with expectations to achieve operating profitability by the fourth quarter.

Key financial findings indicate a significant improvement in performance, with sales reaching 2,377 million yen in the third quarter, a 29.6% increase over the previous quarter. Consequently, the company adjusted its full-year operating profit forecast from a loss of 1,600 million yen to a profit of 200 million yen. This growth is largely attributed to the performance of Monster Strike, which achieved 2.5 million users by January 2014 and secured top-tier rankings in both sales and popularity on major mobile platforms.

The company’s structural transformation involved a multifaceted approach, including the divestment of non-core assets like mixi Marketing, the shuttering of international subsidiaries, and a shift in the advertising business from pure banner ads to ad networks. Furthermore, the company expanded its portfolio through the Innovation Center, launching new services such as the photo book application Nohana and entering the wedding planning support sector. These efforts were supported by a transition from browser-based games to native mobile applications. The report covers the period from October 1, 2013, to December 31, 2013, focusing on the Japanese market and the company’s internal restructuring initiatives.