Consolidated Financial Results for the Six Months Ended September 30, 2016
Mixi, Inc. reported consolidated financial results for the first six months of the fiscal year ending March 31, 2017, covering the period from April 1, 2016, to September 30, 2016. The data reveals a period of contraction compared to the previous year’s record growth. Net sales reached ¥86,669 million, representing a 9.1% decrease year-over-year. Profitability also declined, with operating income falling 21.5% to ¥34,284 million and profit attributable to owners of the parent dropping 19.5% to ¥22,879 million. Despite these declines, the company maintained a strong financial position with an equity ratio of 82.6%, up from 73.6% at the end of the previous fiscal year.
The performance is primarily driven by two main industry segments: the Entertainment Business and the Media Platform Business. The Entertainment Business remains the dominant revenue driver, contributing ¥79,452 million in sales, though this was a decrease from the ¥89,027 million recorded in the same period in 2015. Conversely, the Media Platform Business showed growth, with sales increasing from ¥6,324 million to ¥7,217 million. Segment profit followed a similar trend, with Entertainment declining to ¥36,899 million while Media Platform profit dipped slightly to ¥955 million after accounting for adjustments and company-wide expenses.
Looking ahead, the full-year forecast for the period ending March 31, 2017, anticipates total net sales of ¥218,000 million, which would represent a 4.4% increase over the prior full year. However, net income is expected to decline by 11.5% to ¥54,000 million. To improve capital efficiency and shareholder value, the company authorized a significant share repurchase program of up to 3,000,000 shares for a maximum price of ¥10 billion. These results were prepared under Japanese GAAP and reflect the company's transition into a more stable, albeit lower-margin, operational phase following its prior period of rapid expansion.
