mixi Group FY2020 Q3 Earnings Results Briefing

Key insights

6 takeaways

01
The mixi Group revised its full-year forecast upward to 103 billion yen in net sales and 9 billion yen in operating income, driven by subsidiary consolidation and reduced advertising and relocation expenses.See it on page 4
02
Q3 net sales reached 25.5 billion yen with an operating loss of 900 million yen, representing an 88.4% year-on-year decline in operating income when adjusting for one-time relocation costs.See it on page 5
03
The company is shifting its strategy away from underperforming services like Fight League to focus on revitalizing the flagship title Monster Strike, which has surpassed 53 million cumulative global users.See it on page 13
04
Strategic growth in the sports sector is being pursued through the acquisition of Net Dreamers to bolster government-managed betting operations and the launch of the athlete-focused gifting service, Unlim.See it on page 16
05
Financial results for the quarter were impacted by the unification of fiscal periods for subsidiaries Chariloto and Sfidante, which altered the timing of income recognition.See it on page 5
06
Management aims to improve Monster Strike's profitability by increasing average revenue per user (ARPU) through targeted collaboration projects and frequent game updates.See it on page 11

Summary

The mixi Group’s third-quarter earnings results for fiscal year 2020, covering the period from October 1, 2019, to December 31, 2019, reflect a strategic pivot toward revitalizing core entertainment products and expanding sports-related business segments. The company announced an upward revision to its full-year forecast, projecting net sales of 103 billion yen and operating income of 9 billion yen. This revision is attributed to the consolidation of new subsidiaries, such as Net Dreamers, and a reduction in temporary expenses related to office relocation and streamlined advertising costs for its flagship title, Monster Strike.

Financial performance for the third quarter showed a year-on-year decline, with net sales reaching 25.5 billion yen and an operating loss of 900 million yen. When excluding one-time office relocation costs, the operating income stood at 700 million yen, representing an 88.4% decrease compared to the same period in the previous year. The results were also impacted by the unification of fiscal periods for subsidiaries Chariloto and Sfidante, which altered the timing of income recognition.

The business strategy centers on two primary pillars: the revitalization of Monster Strike and the growth of sports-related ventures. While Monster Strike continues to maintain a large user base—surpassing 53 million cumulative users globally—the company is focused on increasing average revenue per user (ARPU) through targeted collaboration projects and game updates. Simultaneously, the company is diversifying its portfolio by launching Unlim, a sports gifting service designed to provide financial support to athletes, and leveraging the acquisition of Net Dreamers to strengthen its presence in government-managed betting sports. These initiatives are intended to establish new revenue pillars as the company moves away from underperforming services like Fight League.