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DeNA Reports First Quarter, Fiscal Year 2013 Financial Results
TOKYO, JAPAN - August 8, 2013 - DeNA Co., Ltd. (Tokyo: 2432), the global leader in mobile Internet services, today announced its financial results for the quarter ended June 30, 2013. DeNA reported quarterly revenue of 52.2 billion yen (532 million* USD), 10 percent higher than the same quarter last year, and operating profit of 17.0 billion yen (173 million* USD), 8 percent lower than the same quarter of the previous year.
"Multiple chart-topping titles this quarter helped turn Mobage West profitable for the month of June," said Isao Moriyasu, President and CEO of DeNA. "I am excited to announce that we have implemented new strategic initiatives to launch a massive amount of first- and second-party games to secure the number one position in the expanding global social mobile gaming market."
Financial Summary
(Billion yen)
| Item | Q1 FY2013 | Q1 FY2012 | YoY Change | Q4 FY2012 | QoQ Change |
| Revenue | 52.2 | 47.6 | 10% | 52.3 | 0% |
| Operating profit | 17.0 | 18.4 | -8% | 18.2 | -7% |
| Profit before tax | 17.6 | 18.1 | -3% | 20.6 | -15% |
| Profit for the period attributable to owners of the parent | 9.6 | 10.0 | -4% | 12.1 | -21% |
First Quarter, FY2013 Business Highlights
- MobaCoin consumption in Japan was 54.8 billion yen (559 million* USD), 6 percent lower than the previous quarter. The downward trend was mostly attributed to no new hit first- and second-party titles launched during the quarter.
- Mobage Japan's third-party titles remained strong during the quarter.
- MobaCoin consumption from international business showed steady growth at approximately 80 million USD.
- Mobage West achieved profitability for the month of June.
- Mobage West produced hit titles from its first-, second- and third-party businesses; as of June 30, 2013, seven Mobage West games ranked in the top 25 spots on Google Play's U.S. top grossing chart.
Business Strategy Update for FY2013
- Launch approximately 60 new first- and second-party titles on Mobage Japan and over 20 new first- and second-party titles on Mobage West during this fiscal year.
- Revitalize the growth of MobaCoin consumption with new titles.
- Capture the Japanese native app market by targeting multiple genres; 70 percent of new titles will be app-based.
- Continue growth of MobaCoin consumption for the international business in the upcoming quarters.
- Achieve a profitable quarter in Q2 FY2013 for Mobage West.
Second Quarter, FY2013 Guidance
- Revenues are projected to be 50.9 billion yen (520 million* USD).
- Operating profit is projected to be 16.7 billion yen (170 million* USD).
- Profit for the period attributable to owners of the parent is projected to be 10.3 billion yen (105 million* USD).
* Dollar values reported were translated at 98.02 Japanese yen per U.S. dollar, which was the Telegraphic Transfer Middle Rate (TTM) per the Bank of Tokyo-Mitsubishi UFJ as of August 6, 2013.
Condensed Consolidated Financial Statements
Condensed Consolidated Statement of Financial Position
|
|
| (Millions of yen) |
|
| As of March 31, 2013 | As of June 30, 2013 |
| Assets |
|
|
| Current assets |
|
|
| Cash and cash equivalents | 67,337 | 46,657 |
| Trade and other current receivables | 45,946 | 44,960 |
| Other current financial assets | 1,123 | 1,019 |
| Other current assets | 4,421 | 5,039 |
| Total current assets | 118,827 | 97,674 |
|
|
|
|
| Non-current assets |
|
|
| Property and equipment | 4,135 | 3,858 |
| Goodwill | 39,437 | 41,056 |
| Intangible assets | 8,719 | 10,044 |
| Investments accounted for using the equity method | 8,044 | 8,422 |
| Other non-current financial assets | 8,702 | 9,306 |
| Deferred tax assets | 6,887 | 8,163 |
| Other non-current assets | 34 | 59 |
| Total non-current assets | 75,957 | 80,909 |
| Total assets | 194,784 | 178,583 |
|
|
| (Millions of yen) |
|
| As of March 31, 2013 | As of June 30, 2013 |
| Liabilities and equity |
|
|
| Liabilities |
|
|
| Current liabilities |
|
|
| Trade and other current payables | 30,034 | 30,511 |
| Income tax payables | 21,645 | 8,618 |
| Other current financial liabilities | 8,743 | 8,802 |
| Other current liabilities | 9,461 | 10,678 |
| Total current liabilities | 69,882 | 58,610 |
|
|
|
|
| Non-current liabilities |
|
|
| Non-current provisions | 949 | 950 |
| Other non-current financial liabilities | 15 | 11 |
| Other non-current liabilities | 262 | 264 |
| Total non-current liabilities | 1,226 | 1,225 |
| Total liabilities | 71,108 | 59,835 |
|
|
|
|
| Equity |
|
|
| Common stock | 10,397 | 10,397 |
| Capital surplus | 10,361 | 10,812 |
| Retained earnings | 127,927 | 130,805 |
| Treasury stock | (34,724) | (44,427) |
| Other components of equity | 5,298 | 7,047 |
| Total equity attributable to owners of the parent | 119,259 | 114,633 |
| Non-controlling interests | 4,416 | 4,115 |
| Total equity | 123,676 | 118,748 |
| Total liabilities and equity | 194,784 | 178,583 |
Condensed Consolidated Income Statement
|
|
| (Millions of yen) |
|
| Three months ended June 30, 2012 | Three months ended June 30, 2013 |
| Revenue | 47,590 | 52,158 |
| Cost of sales | (12,979) | (15,859) |
| Gross profit | 34,611 | 36,299 |
| Selling, general and administrative expenses | (16,277) | (19,122) |
| Other income | 177 | 132 |
| Other expenses | (119) | (318) |
| Operating profit | 18,392 | 16,991 |
| Finance income | 12 | 262 |
| Finance costs | (338) | (9) |
| Share of profit (loss) of associates accounted for using the equity method | (1) | 337 |
| Profit before tax | 18,065 | 17,581 |
| Income tax expense | (7,747) | (7,699) |
| Profit for the period | 10,318 | 9,882 |
|
|
|
|
| Attributable to: |
|
|
| Owners of the parent | 9,993 | 9,575 |
| Non-controlling interests | 325 | 307 |
| Profit for the period | 10,318 | 9,882 |
|
|
|
|
|
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| (Yen) |
| Earnings per share attributable to owners of the parent: |
|
|
| Basic earnings per share | 70.11 | 72.07 |
| Diluted earnings per share | 69.91 | 71.89 |
Supplemental Information
1. Number of Shares Issued (common stock) (Shares)
1) Total number of shares issued at the end of the period (including treasury stock):
| As of June 30, 2013 | As of March 31, 2013 |
| 150,810,033 | 150,810,033 |
2) Total number of shares of treasury stock at the end of the period:
| As of June 30, 2013 | As of March 31, 2013 |
| 21,303,932 | 16,847,550 |
(Note)
The 700,370 shares of the Company's stock owned by the Stock Grant ESOP Trust account are included in the "Total number of shares of treasury stock at the end of the period" as of June 30, 2013, and the 733,272 shares of the Company's stock owned by the same trust account are included in the "Total number of shares of treasury stock at the end of the period" as of March 31, 2013.
3) Average number of shares during the period:
|
| Q1 FY2013 | Q1 FY2012 |
| Basic | 132,861,671 | 142,536,011 |
| Diluted | 133,189,450 | 142,950,481 |
2. Per Share Information (Yen)
1) 1H FY2013 Guidance for Basic earnings per share:
| 1H FY2013 Guidance |
| 151.46 |
(Note)
Please see "Consolidated Income Statement" for Q1 FY2013 earnings per share.
3. Segment Information (Millions of yen)
1) Social Media Business:
|
| Q1 FY2013 | Q1 FY2012 | |
| Revenue | 45,067 | 41,281 | |
|
| Intersegment revenue | 15 | 47 |
| Segment profit | 17,868 | 18,268 | |
2) E-commerce Business:
|
| Q1 FY2013 | Q1 FY2012 | |
| Revenue | 4,917 | 4,378 | |
|
| Intersegment revenue | 569 | 458 |
| Segment profit | 886 | 1,147 | |
3) Other:
|
| Q1 FY2013 | Q1 FY2012 | |
| Revenue | 2,816 | 2,494 | |
|
| Intersegment revenue | 58 | 58 |
| Segment profit | 146 | 183 | |
(Notes)
1. Segment profit is calculated by deducting cost of sales and SG&A less corporate expenses, from revenue.
2. "Social Media Business" includes services such as Mobage. E-commerce Business includes services such as DeNA Shopping, Mobaoku, processing settlement, travel agency and insurance agency. "Other" refers to operating segments that do not fall into any of the reportable segments, including operations of a professional baseball team.
