DeNA Reports Third Quarter, Fiscal Year 2017 Financial Results

TOKYO, JAPAN - February 8, 2018 - DeNA Co., Ltd. (Tokyo: 2432) today announced its IFRS and non-GAAP financial results for the quarter ended December 31, 2017. DeNA reported quarterly IFRS revenue of 32.8 billion yen, IFRS operating profit of 12.6 billion yen and non-GAAP operating profit excluding the seasonal sports business of 3.3 billion yen.

"Despite our hopes for our holiday season initiatives, our third quarter revenue and non-GAAP operating profit did not meet our expectations," said Isao Moriyasu, President and CEO of DeNA. "One highlight from the quarter was the November launch of Animal Crossing: Pocket Camp globally, our fourth Nintendo partnership title. Going forward, we will continue to refine and improve our business to delight people around the world."

Third Quarter FY2017 Highlights

• Recognized approximately 10.7 billion yen in other income as profit from the cumulative amount of exchange differences accumulated in other components of equity relating to the overseas subsidiaries
• The Nintendo partnership title Animal Crossing: Pocket Camp was released globally in November 2017
• Original RPG title Megido 72 was released in December 2017

Recent Developments and Strategic Initiatives

• New Nintendo partnership title in the Mario Kart franchise, Mario Kart Tour, expected to be released during FY2018
• Announced Easy Ride service in partnership with Nissan Motor Co., Ltd., to jointly develop a new robo-vehicle mobility service

Guidance for Quarter Ending March 31, 2018

Non-GAAP
• Operating profit excluding Sports: 2.9 billion yen*

IFRS
• Revenue: 32.5 billion yen
• Operating profit: 0.7 billion yen
• Profit for the period attributable to owners of the parent: 0.8 billion yen
• DeNA forecasts a year-end dividend payment of 32 yen per share, with an estimated dividend payout ratio of 19.7%

*Assumptions for the fourth quarter FY2017 financial guidance for Non-GAAP operating profit excluding Sports:
• Expect slight increase quarter-over-quarter for both the Game Business and the E-commerce Business
• Expect approx. 1.5 billion yen loss for New Businesses and Others
• Expect approx. 1 billion yen in asset retirement and impairment under Other expenses

Download the PDF version including the financial summary and IFRS to non-GAAP reconciliation tables here