DeNA Reports First Quarter, Fiscal Year 2013 Financial Results

CATEGORY :Corporate

DATE :2013.08.08

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

		(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.

About DeNA

DeNA Co., Ltd. (pronounced “D-N-A”) is a global Internet company focused on social game platforms, social games, e-commerce and other services primarily for smart devices. DeNA’s current flagship business is its mobile social games platform Mobage (pronounced “moh-bah-geh”), which offers first-, second- and third-party games on multiple localized user networks worldwide. Founded in 1999, DeNA is headquartered in Tokyo with offices and development studios across the globe. DeNA is listed on the Tokyo Stock Exchange (2432). For more information, visit: dena.com

The information and data contained within this press release have been determined based on information available as of August 8, 2013. DeNA disclaims any obligation to update or revise such information and data, whether as a result of new information, future events or otherwise. In addition, any forward-looking statements contained in this press release are based on our opinions and information available as of August 8, 2013, and involve uncertainty. Please be aware that the actual performance data and similar information are subject to influence from diverse factors, and may differ from the forecasts presented herein.