DeNA Reports Fourth Quarter and Fiscal Year 2012 Financial Results

Record-High Annual Revenue and Operating Profit for Fiscal Year 2012

TOKYO, JAPAN - May 9, 2013 - DeNA Co., Ltd. (Tokyo: 2432), the global leader in mobile Internet services, today announced its financial results for the quarter and the fiscal year ended March 31, 2013. DeNA reported quarterly revenue of 52.3 billion yen (approximately $528 million*), 22 percent higher than the same quarter last year, and operating profit of 18.2 billion yen ($184 million), 3 percent higher than the same quarter of the previous year. DeNA concluded a successful fiscal year with record-high 202.5 billion yen in revenue ($2.04 billion) and 76.8 billion yen in operating profit ($775 million), up 38 and 28 percent respectively.

"DeNA's full-year revenues and operating profits increased for the ninth consecutive year, representing growth every year since the company went public," said Isao Moriyasu, President and CEO of DeNA.  "We will continue to pursue aggressive growth worldwide for our mobile Internet business, especially in the mobile social games sector."

Financial Summary
(Billion yen)

Item

Q4 FY2012

Q4 FY2011

YoY Change

FY2012

FY2011

YoY Change

Revenue

52.3

42.8

22%

202.5

146.5

38%

Operating profit

18.2

17.6

3%

76.8

60.3

28%

Profit before tax

20.6

17.9

15%

79.2

60.3

31%

Profit for the period  attributable to owners of the parent

12.1

9.4

29%

45.6

31.1

46%

Note: DeNA adopted International Financial Reporting Standards (IFRS) from Q1 FY2012. Throughout this press release all references to FY2011 figures have been restated in accordance with IFRS.

Fourth Quarter FY2012 Business Highlights

  • MobaCoin consumption in Japan was 58.3 billion yen ($588 million), 2.5 percent lower than the previous quarter.
  • Overseas MobaCoin consumption showed strong and steady quarter-to-quarter increase, approaching $70 million.
  • Increased user engagement drove monetization growth. As a result, Mobage titles occupied top ranks in U.S. Google Play's top-grossing chart.
  • DeNA and Nexon formed a global business alliance to bring new Nexon-developed games to Mobage networks.
  • Groovy, DeNA's new music player app was launched in Japan.

F2012 Business Highlights

  • MobaCoin consumption in Japan was 228.5 billion yen ($2.31 billion), 41 percent higher than the previous fiscal year.
  • Overseas MobaCoin consumption grew substantially with strong and steady growth every quarter during the fiscal year with hit titles such as Rage of BahamutMARVEL: War of Heroes and Blood Brothers.
  • Successfully addressed the regulatory matters concerning "complete gacha" quickly and  maintained our growth of Mobage business in Japan during that time.
  • MobaCoin consumption on smartphones exceeded feature phones in Japan in September 2012, proving that the transition of Mobage users onto smartphones has been a success.
  • Three Mobage titles dominated the top three spots on U.S. Google Play's top-grossing chart in December 2012.
  • Launched two new mobile Internet services, Comm and Groovy.
  • Formed or strengthened multiple business alliances with key industry players to either develop new games or provide our games to a broader user base outside Mobage.
  • Maintained strong financial results through enhanced game operations of existing first-, second- and third-party titles.

Business Strategy for Fiscal 2013

  • Aggressively launch many native-app titles in Japan, utilizing knowledge accumulated from Mobage West's success.
  • Form alliances with developers, specializing in both browser and app-based games, to launch an increasing number of new titles targeting multiple genres.
  • Continue to develop and launch new mobile Internet services in addition to mobile games.
  • Turn Mobage West into a profitable operation during the summer.

First Quarter FY2013 Forecast                                                                                                           

  • Revenues are projected to be 53.9 billion yen.
  • Operating profit is projected to be 17.4 billion yen.
  • Profit for the period attributable to owners of the parent is projected to be 9.7 billion yen.

* Dollar values reported were translated at 99.13 Japanese yen per U.S. dollar, which was the Telegraphic Transfer Middle Rate (TTM) per the Bank of Tokyo-Mitsubishi UFJ as of May 7, 2013.

Consolidated Financial Statements