Consolidated Financial Results for the Six Months Ended September 30, 2021
Mixi, Inc. reported a decline in financial performance for the first half of the fiscal year ending March 31, 2022, covering the period from April 1, 2021, to September 30, 2021. Net sales reached ¥51,587 million, a 12.2% decrease compared to the same period in the previous year. Profitability saw a more significant contraction, with operating income falling 47.5% to ¥7,382 million and profit attributable to owners of the parent decreasing 33.9% to ¥6,167 million. Despite these declines, the company maintained a strong financial position with an equity ratio of 85.2% and total assets of ¥215,166 million.
The Digital Entertainment Business, primarily driven by the flagship title Monster Strike, remains the company's largest segment but experienced a drop in net sales from ¥51,438 million to ¥40,699 million. Conversely, the Sports Business saw growth, with revenue increasing from ¥5,377 million to ¥8,000 million, though it continued to operate at a segment loss. The Lifestyle Business showed improvement, moving from a loss to a modest profit of ¥48 million.
A significant portion of the report details the adoption of new Accounting Standards for Revenue Recognition. For Monster Strike, the company transitioned from recognizing revenue at the point of in-game currency consumption to recognizing it over the estimated period of character use. Additionally, transaction prices are now allocated across both paid and free "orbs" because they provide equivalent functional value. While these changes resulted in a ¥667 million increase in beginning retained earnings, the impact on the current period's operating income was minimal.
Looking ahead, Mixi revised its full-year forecast for the fiscal year ending March 31, 2022, providing a range of estimates that anticipate continued year-on-year declines. Net sales are projected between ¥105,000 million and ¥110,000 million, while operating income is expected to fall between 78.2% and 91.3% compared to the previous fiscal year. The company intends to maintain its annual dividend at ¥110.00 per share.
