mixi

Game Co.

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Quarterly Consolidated Balance Sheets: 1Q of FY2013

The quarterly consolidated balance sheets and income statements for the first quarter of fiscal year 2013, covering April to June 2013, reveal a contraction in both sales and profitability compared with the same period in fiscal year 2012. Net sales fell from ¥3,539 million to ¥2,144 million, while gross profit declined from ¥2,554 million to ¥1,448 million. Operating income shifted from a profit of ¥889 million in 2012 to an operating loss of ¥84 million in 2013, largely due to higher equity losses of affiliates and foreign exchange impacts. Net income reversed from ¥562 million in 2012 to a loss of ¥253 million, driven by increased non‑operating expenses and a significant impairment loss of ¥34 million. Balance sheet items show modest changes: total assets decreased from ¥20,083 million to ¥18,868 million, with current assets shrinking by ¥1,152 million. Cash and deposits rose slightly from ¥13,199 million to ¥12,643 million, but overall liquidity improved as cash and equivalents increased by ¥1,944 million during the quarter. Shareholders’ equity contracted from ¥16,291 million to ¥15,768 million, reflecting the net loss and a higher foreign currency translation adjustment of ¥55 million. The company’s cash flow statement indicates operating activities generated a net outflow of ¥210 million, while investing activities provided a substantial inflow of ¥2,371 million, largely from proceeds on the sale of subsidiary stocks. Financing activities resulted in a net outflow of ¥265 million, mainly due to cash dividends paid. These figures illustrate a period of financial contraction and restructuring within the first quarter of FY2013, with significant impacts from affiliate losses, impairment charges, and currency translation adjustments.

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Quarterly Consolidated Balance Sheets: 3Q FY2012

The quarterly consolidated balance sheets and income statements for the third quarter of fiscal year 2012 present a clear picture of the company’s financial position and performance. As of December 31, 2012, total assets rose to ¥19,906 million from ¥19,649 million at the end of March 2012, driven primarily by an increase in current assets—especially cash and deposits—which grew from ¥10,423 million to ¥12,555 million. Current liabilities fell by 25%, from ¥4,848 million to ¥3,624 million, largely due to reductions in accounts payable and income taxes payable. Shareholders’ equity increased from ¥14,722 million to ¥16,217 million, reflecting higher retained earnings (¥10,367 million vs. ¥8,955 million) and a modest decline in treasury stock. Operating performance improved markedly. Net sales climbed 4% to ¥9,922 million, while cost of sales fell by 10%, boosting gross profit from ¥6,373 million to ¥7,083 million. Operating income more than doubled, rising from ¥1,385 million to ¥2,342 million. Non‑operating items shifted favorably: interest income remained flat, but gains on investments and other non‑operating income increased. Ordinary income surged from ¥1,226 million to ¥2,349 million, and extraordinary gains—particularly the sale of subsidiary stocks—added ¥406 million in 3Q FY2012, offsetting a smaller extraordinary loss of ¥115 million. Comprehensive income followed the same upward trend, rising from ¥464 million to ¥1,631 million. Cash flow statements show a dramatic improvement in operating cash generation, from ¥246 million to ¥1,940 million, while investing activities shifted from a net outflow of ¥1,922 million to a smaller outflow of ¥677 million. Financing cash flows turned from a net outflow of ¥1,906 million to a modest inflow of ¥137 million, reflecting the disposal of treasury stock and reduced dividend payments. Overall, the company demonstrated stronger liquidity, profitability, and shareholder value creation in 3Q FY2012 compared to the same period a year earlier.

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FY2015 Annual Business Report: MIXI

The FY2015 annual report demonstrates that mixi, Inc.’s core revenue engine remains the mobile game Monster Strike, which generated ¥112.9 billion in net sales and ¥52.7 billion of operating income, a 30‑plus percent increase over FY2014. Net profit rose to ¥32.9 billion, reversing the prior year’s loss, and dividends were raised to ¥59 per share (¥82 total). The company attributes the surge to Monster Strike’s rapid download growth—over 30 million cumulative unique device downloads—and its expansion into new markets, including China, South Korea, North America, and Hong Kong/Macau. Strategic media‑mix initiatives such as TV commercials, outdoor advertising, and in‑game tie‑ups with movies and anime have reinforced user acquisition and retention. Beyond Monster Strike, mixi diversified its portfolio through acquisitions of Hunza, Inc. (TicketCamp) and MUSE & Co., Ltd. (fashion e‑commerce), strengthening its B2C and C2C services segment. The company also launched several new mobile titles in FY2015, including “nohana” photo‑sharing and “Kimidake LIVE,” a live‑streaming platform for artists, targeting family and children audiences. A planned annual release of one new game each year signals a sustained focus on in‑house development. Financially, total assets stood at ¥104.2 billion with an equity ratio of 51.4 %. The report outlines a forward‑looking strategy that leverages mixi’s social networking foundation, media‑mix expertise, and newly acquired IPs to broaden its entertainment and platform businesses while continuing to deliver shareholder value through dividends.

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Quarterly Consolidated Balance Sheets: 2Q FY2013

The quarterly consolidated balance sheet and income statements for the second quarter of fiscal year 2013 reveal a contraction in both operating performance and financial position compared with the same period of fiscal year 2012. Total assets fell from ¥20,083 million to ¥17,480 million, largely due to a reduction in current assets and non‑current investments. Current liabilities decreased from ¥3,731 million to ¥2,738 million, but shareholders’ equity declined from ¥16,291 million to ¥14,664 million, driven by a lower retained earnings balance and the continued impact of treasury stock. Operating income swung from ¥1,612 million in 2Q FY2012 to a loss of ¥398 million in 2Q FY2013, reflecting higher selling, general and administrative expenses relative to sales. Net sales dropped by 41% from ¥6,817 million to ¥3,979 million, while cost of sales fell proportionally. Non‑operating losses increased sharply due to a ¥126 million loss on equity in affiliates and a ¥21 million loss on investments, offset only partially by foreign exchange gains of ¥20 million. Ordinary income turned negative, with a loss of ¥525 million in 2Q FY2013 versus a profit of ¥1,583 million previously. Comprehensive income mirrored the net loss trend, reporting a ¥1,293 million loss attributable to owners of the parent in 2Q FY2013 versus a ¥1,184 million profit in 2Q FY2012. Cash flow analysis shows operating cash outflows of ¥448 million, a significant rise in investing cash inflows to ¥2,774 million—largely from sales of subsidiary shares—and financing outflows of ¥327 million due to dividend payments. Overall, the company experienced a notable decline in profitability and equity during the second quarter of FY2013.

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Consolidated Balance Sheets: FY2012-FY2013

The consolidated financial statements cover the fiscal years ending March 31, 2012 and March 31, 2013. Net sales fell from ¥13,334 million to ¥12,632 million, yet operating income rose from ¥2,194 million to ¥2,574 million, reflecting lower cost of sales and improved operating efficiency. Net income more than doubled, increasing from ¥749 million to ¥1,654 million, largely driven by a substantial extraordinary gain of ¥406 million on the sale of subsidiary shares and reduced operating expenses. Comprehensive income grew from ¥732 million to ¥1,691 million; foreign‑currency translation adjustments swung from a negative ¥5 million to a positive ¥36 million, offsetting other comprehensive losses. Assets increased from ¥19,649 million to ¥20,083 million. Current assets grew modestly, with cash and deposits rising by ¥2,776 million. Non‑current assets declined due to a reduction in property, plant and equipment net balance from ¥1,258 million to ¥916 million, reflecting asset disposals and depreciation. Liabilities fell from ¥4,926 million to ¥3,791 million, driven by lower current liabilities and a reduction in non‑current obligations. Shareholders’ equity expanded from ¥14,722 million to ¥16,291 million; retained earnings grew by ¥1,453 million, while treasury stock decreased in net value from a negative ¥1,753 million to a negative ¥1,690 million. Cash flow analysis shows operating cash inflows rising from ¥1,043 million to ¥2,836 million. Investing activities remained negative, with a net outflow of ¥2,971 million in 2012 and ¥946 million in 2013, largely due to property, plant and equipment purchases. Financing cash flows were negative in both years, with treasury stock repurchases offset by modest dividend payments. The company’s liquidity improved, as cash and equivalents increased from ¥11,293 million to ¥9,199 million despite the net cash outflow in 2012. Overall, the firm strengthened profitability and equity while managing asset composition and cash flows over the two‑year period.

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FY2016 Annual Report (Part 1: Business Report)

The FY2016 business report of mixi, Inc. demonstrates a dramatic expansion in both sales and profitability driven primarily by the Entertainment Business segment. Net sales rose 84.9 % to ¥208.8 billion, operating income increased 80.4 % to ¥95.0 billion, and attributable profit surged 85.1 % to ¥61.0 billion compared with FY2015. The growth is largely attributed to the continued success of Monster Strike, which amassed over 35 million cumulative users worldwide and generated a substantial portion of revenue. New titles such as Marvel Tsum Tsum, released in February 2016, added fresh income streams and broadened the company’s IP portfolio. The Media Platform Business also contributed robustly, with sales of ¥112.9 billion and operating income of ¥52.7 billion, reflecting a stable service base that supports long‑lived user engagement. mixi’s strategy for FY2017 focuses on diversifying beyond gaming by establishing new revenue pillars in video and software, merchandising, and overseas development. Acquisitions of Hunza Inc., MUSE & Co., Ltd., and Diverse, Inc. underpin this expansion, while the creation of XFLAG Pictures signals a commitment to original video content production. Financially, total assets reached ¥143.2 billion and equity stood at ¥121.5 billion, yielding an equity ratio of 73.6 %. The company maintained a strong capital base through a public offering in July 2015, and dividends of ¥77 per share were paid to shareholders. The report covers the fiscal year ending March 31, 2016, with a geographic focus on Japan and expanding international markets, particularly in Asia. Methodologically, figures are consolidated from mixi’s subsidiaries and reflect full‑year performance metrics.

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Quarterly Consolidated Balance Sheets: 3Q of FY2013

The quarterly consolidated balance sheets and accompanying income statements for the third quarter of FY2013 reveal a contraction in both revenue and profitability compared with the same period in FY2012. Net sales fell from ¥9,922 million to ¥6,357 million, a decline of 36%, while gross profit dropped from ¥7,083 million to ¥4,048 million. Operating income turned negative, registering a loss of ¥509 million versus a profit of ¥2,342 million in the prior year. The loss was largely driven by higher equity losses of affiliates and a significant increase in non‑operating expenses, including a ¥152 million loss on equity of affiliates and a ¥15 million loss on investments in partnership. Net income reversed sharply, falling from ¥1,621 million to a loss of ¥1,573 million. Comprehensive income followed the same trend, declining from ¥1,631 million to a loss of ¥1,481 million. The company’s cash position remained relatively stable; cash and equivalents increased by ¥428 million to ¥9,628 million at the end of FY2013, supported by operating cash inflows and modest financing activities. Assets shifted toward higher intangible and investment holdings. Goodwill rose from ¥178 million to ¥1,036 million, while total intangible assets increased to ¥1,169 million. Property, plant and equipment decreased from ¥916 million to ¥669 million, reflecting divestitures or write‑downs. Total assets contracted from ¥20,083 million to ¥17,623 million. Liabilities and equity also contracted. Current liabilities fell from ¥3,731 million to ¥3,116 million, and shareholders’ equity decreased from ¥16,220 million to ¥14,318 million. Treasury stock remained a significant negative equity component at approximately ¥1,690 million. Overall, the FY2013 third‑quarter results indicate a challenging operating environment with declining sales and profitability, offset only partially by cash generation. The company’s balance sheet reflects a shift toward higher intangible assets and reduced fixed‑asset investment, while equity erosion remains a concern.

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Mixi Report: FY2013 Business Results

The FY2014 business results demonstrate a strategic pivot toward new growth areas after a period of declining sales and income. Net sales fell 3 % from ¥12,632 million in FY2013 to ¥12,155 million in FY2014, while operating income contracted sharply from ¥2,574 million to ¥480 million, resulting in a net loss of ¥227 million. The decline is largely attributed to reduced performance in the traditional “mixi” social networking segment, which has been restructured toward network advertising and staff redeployment to higher‑margin initiatives. In contrast, the Content Group’s flagship mobile game Monster Strike delivered a robust recovery: fourth‑quarter sales rose 143.8 % to ¥5,798 million, operating income reached ¥990 million, and net profit stood at ¥1,345 million. Monster Strike’s success is linked to aggressive marketing, including nationwide TV commercials and a focus on multiplayer features that encourage daily play among friends. The company plans to expand the game overseas, targeting China, Hong Kong, Macau, and Taiwan, with a partnership with Tencent to localize the service. Other segments—Media and Life Events—continue to grow. The “nohana” photobook business achieved a 16 % increase in paid purchase rates, while the “Find Job!” job‑advertising service maintained a stable user base of 700 k members. Mixi’s equity ratio improved to 84.5 % after a ¥6.5 billion public offering, and a five‑for‑one stock split is scheduled for July 1 2014. Overall, the report highlights a shift from legacy social networking to diversified content and advertising services, with Monster Strike as the primary catalyst for returning profitability.

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