Mixi FY2014 Second-Quarter Earnings Results Briefing Session

Key insights

6 takeaways

01
Mixi reported Q2 FY2014 sales of 22.2 billion yen and an operating profit of 9.7 billion yen, representing quarter-over-quarter growth of 74.8% and 108.3%, respectively.See it on page 1
02
Driven by the success of Monster Strike, the company revised its full-year earnings forecast upward to 100 billion yen in sales and 45 billion yen in operating profit.See it on page 3
03
Monster Strike sales increased by 93.5% quarter-over-quarter, propelling the title to the fourth position in global app revenue rankings by September 2014.See it on page 4
04
To sustain growth, Mixi is aggressively scaling marketing efforts and expanding Monster Strike internationally with localized versions in Taiwan, North America, and South Korea, alongside plans for an arcade adaptation.See it on page 32
05
Operational costs, including outsourcing and settlement fees, rose significantly in Q2 as the company scaled its infrastructure and implemented 24/7 security monitoring.See it on page 5
06
The company is diversifying beyond its legacy social networking service by investing in life event platforms like the photo book service nohana and forming a capital tie-up with SmartNews for native advertising.See it on page 31

Summary

Mixi, Inc.’s earnings results for the second quarter of fiscal year 2014, covering the period from July 1 to September 30, 2014, demonstrate a period of significant financial expansion driven primarily by the success of the mobile game Monster Strike. The company reported quarterly sales of 22.2 billion yen, representing a 74.8% increase over the previous quarter, and an operating profit of 9.7 billion yen, a 108.3% increase. This growth trajectory led the company to revise its full-year earnings estimates upward, projecting annual sales of 100 billion yen and an operating profit of 45 billion yen.

The primary catalyst for this performance is the rapid adoption of Monster Strike, which saw a 93.5% increase in sales quarter-over-quarter. By September 2014, the title had reached the fourth position in global app revenue rankings. To sustain this momentum, the company has aggressively invested in marketing, including television commercials, outdoor advertising, and cross-promotional tie-ups. Operational costs, specifically outsourcing and settlement fees, rose in tandem with the game’s scaling. The company is actively pursuing international growth, with localized versions of the game launched in Taiwan, North America, and South Korea, alongside plans for an arcade adaptation.

Beyond gaming, the company continues to manage its legacy social networking service, mixi, while diversifying its portfolio through life event businesses such as the photo book service nohana and various wedding support platforms. Strategic initiatives include a capital tie-up with SmartNews to develop native advertising solutions. Throughout this period of rapid growth, the company has emphasized the implementation of 24/7 monitoring and security protocols to maintain the integrity of its digital platforms and ensure a safe user environment.