Mixi FY2015 First-Quarter Earnings Results Briefing Session

Key insights

6 takeaways

01
Mixi reported strong Q1 FY2015 results with net sales of 50.08 billion yen and operating income of 24.35 billion yen.See it on page 3
02
The mobile game Monster Strike remains the primary revenue driver, supported by in-game collaborations, large-scale events, and new competitive player-versus-player modes.See it on page 15
03
Mixi raised approximately 17.5 billion yen through an overseas public offering in July 2015 to fund future M&A activity and marketing initiatives.See it on page 7
04
The company is actively diversifying beyond gaming through platforms like Ticket Camp, which experienced a sharp increase in transaction volume following television advertising campaigns.See it on page 22
05
Operational costs increased during the quarter due to higher settlement fees, outsourcing expenses, and the amortization of goodwill from acquisitions like Hunza Inc. and MUSE & Co.See it on page 6
06
The company is expanding the Monster Strike franchise into anime and international markets, though it faced challenges in China requiring a strategic shift in distribution.See it on page 16

Summary

Mixi, Inc. reported robust financial growth for the first quarter of fiscal year 2015, covering the period from April 1 to June 30, 2015. The company achieved significant year-over-year increases across all primary financial metrics, with net sales reaching 50.08 billion yen and operating income totaling 24.35 billion yen. This performance represents a substantial surge compared to the same quarter in the previous year, driven primarily by the continued expansion of the entertainment segment and the consolidation of new subsidiaries, including Hunza Inc. and MUSE & Co.

The entertainment division, anchored by the flagship mobile title Monster Strike, remains the primary engine for revenue growth. The company successfully leveraged in-game collaborations, large-scale events such as the Monster Strike Festival 2015, and the introduction of competitive player-versus-player modes to maintain user engagement. Furthermore, the company is expanding the franchise through an anime project and international marketing efforts, despite challenges in the Chinese market that necessitated a strategic shift in distribution.

Operational costs rose in tandem with this rapid growth, specifically regarding settlement fees, outsourcing, and the amortization of goodwill following recent acquisitions. To support long-term sustainability and shareholder value, the company secured approximately 17.5 billion yen through an overseas public offering in July 2015. These funds are earmarked for further M&A activity and marketing initiatives.

Beyond its core gaming business, the company continues to diversify its portfolio through platforms like Ticket Camp, which saw a sharp increase in transaction volume following targeted television advertising, and niche services such as the beauty-focused application Minimo and family-oriented social tools. The company maintains a strong focus on platform safety, employing 24/7 monitoring and proprietary oversight tools to ensure a secure environment across its social networking and gaming services.