DENA CO., LTD. Q2 FY2023 Operating Results
November 8, 2023
DeNA Co., Ltd.
©︎ DeNA Co., Ltd. | 1 |
1. Financial Results Summary
2
Financial Results Summary*
(billion yen) | FY2022 | FY2023 | FY2022 | FY2023 | |||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | QoQ | YoY | Apr-Sep | Apr-Sep | YoY | |||
change | change | change | |||||||||||
Revenue (IFRS) | 34.8 | 36.4 | 30.2 | 33.5 | 36.1 | 39.0 | 8% | 7% | 71.2 | 75.1 | 6% | ||
Operating profit (IFRS) | 4.0 | 3.1 | -2.0 | -0.9 | 1.7 | 3.1 | 77% | -1% | 7.1 | 4.8 | -32% | ||
Operating profit (Non-GAAP) | 3.8 | 3.0 | -1.7 | -0.8 | 1.6 | 2.9 | 80% | -2% | 6.8 | 4.6 | -32% | ||
Finance income / costs (net) | 6.9 | 1.7 | -2.0 | 1.0 | 2.9 | 1.0 | -66% | -43% | 8.7 | 3.9 | -55% | ||
Share of profit (loss) of associates | |||||||||||||
accounted for using the equity | -0.2 | 0.8 | -0.4 | 1.5 | 1.4 | 0.1 | -94% | -89% | 0.6 | 1.5 | 140% | ||
method** | |||||||||||||
Profit before tax | 10.7 | 5.6 | -4.4 | 1.6 | 6.0 | 4.1 | -31% | -27% | 16.3 | 10.1 | -38% | ||
Profit for the period attributable to | 7.1 | 3.9 | -3.8 | 1.6 | 4.6 | 2.8 | -40% | -30% | 11.1 | 7.4 | -33% | ||
owners of the parent | |||||||||||||
EPS (Yen) | 60.27 | 33.71 | -33.24 | 14.07 | 41.66 | 24.82 | -40% | -26% | 94.22 | 66.48 | -29% | ||
*For full reconciliation of IFRS to Non-GAAP metrics, the calculation process, Non-GAAP EBITDA, and Sports Business seasonality, please see | |
the reference materials at the end of the presentation. | 3 |
**In Q1 FY2023 recognized a one-time gain in earnings of 2.4 billion yen due to capital increase through a third-party allotment by GO Inc. |
Financial Results Summary: Financial Results by Segment
(billion yen) | FY2022 | FY2023 | FY2022 | FY2023 | |||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | QoQ | YoY | Apr-Sep | Apr-Sep | YoY | |||
change | change | change | |||||||||||
Game | Revenue | 15.8 | 16.9 | 14.1 | 17.2 | 12.5 | 13.9 | 11% | -18% | 32.7 | 26.4 | -19% | |
Segment profit/loss | 1.7 | 2.3 | 1.6 | 4.0 | 0.2 | 0.2 | -1% | -91% | 4.0 | 0.4 | -89% | ||
Live streaming | Revenue | 9.6 | 9.9 | 10.2 | 10.3 | 10.8 | 11.0 | 2% | 11% | 19.6 | 21.8 | 12% | |
Segment profit/loss | -0.2 | -0.2 | -0.1 | -0.1 | -0.2 | 0.1 | - | - | -0.4 | -0.1 | - | ||
Sports* | Revenue | 7.9 | 7.9 | 3.0 | 2.1 | 10.2 | 11.0 | 8% | 40% | 15.8 | 21.3 | 35% | |
Segment profit/loss | 2.6 | 2.0 | -1.8 | -2.8 | 3.4 | 4.0 | 17% | 98% | 4.6 | 7.4 | 61% | ||
Healthcare | Revenue | 0.7 | 1.1 | 2.0 | 3.2 | 2.0 | 2.3 | 16% | 112% | 1.8 | 4.2 | 133% | |
& | |||||||||||||
Segment profit/loss | -0.2 | -0.7 | -0.9 | -0.4 | -1.2 | -1.0 | - | - | -0.9 | -2.2 | - | ||
Medical** | |||||||||||||
New Businesses | Revenue | 0.7 | 0.7 | 0.8 | 0.8 | 0.7 | 0.8 | 15% | 24% | 1.4 | 1.5 | 12% | |
and | |||||||||||||
Segment profit/loss | -0.2 | -0.2 | -0.2 | -0.3 | -0.3 | -0.3 | - | - | -0.4 | -0.6 | - | ||
Others | |||||||||||||
*See slides 14-15 for the seasonality of the Sports Business and status of matches for each quarter.
**PPA (a series of operations to allocate the acquisition cost to the assets and liabilities existing in the acquired company and record them in the
consolidated financial statements) for DATA HORIZON and Allm was completed and the FY2022 portion of amortization of intangible assets, etc. 4 was recognized in Q4 FY2022. Management accounting of the financial performance excluding this impact is shown on slide 16.
Financial Results Summary: Cost and Expense Breakdown
(billion yen)
Cost of Sales Personnel Expenses Depreciation and amortization Outsourcing expenses Commission fees Others Selling, general, and administrative expenses Personnel Expenses Sales promotion & Advertising expenses Outsourcing expenses & Commission fees Others Other income* Other expenses*
Consolidated employee headcount**
FY2022 | |||
Q1 | Q2 | Q3 | Q4 |
17.4 | 18.4 | 17.2 | 17.8 |
2.0 | 2.2 | 2.4 | 2.1 |
0.8 | 0.9 | 0.9 | 0.9 |
3.9 | 4.1 | 3.6 | 3.6 |
7.9 | 8.3 | 7.7 | 8.1 |
2.7 | 3.0 | 2.6 | 3.1 |
13.8 | 15.0 | 14.8 | 16.3 |
3.5 | 3.4 | 4.2 | 4.3 |
3.8 | 4.3 | 3.9 | 3.9 |
4.8 | 5.7 | 4.8 | 5.3 |
1.7 | 1.6 | 2.0 | 2.9 |
0.5 | 0.1 | 0.2 | 0.4 |
0.1 | 0.0 | 0.4 | 0.7 |
2,294 | 2,589 | 2,854 | 2,951 |
FY2023 | |||
Q1 | Q2 | QoQ | YoY |
change | change | ||
19.0 | 20.4 | 7% | 11% |
2.2 | 2.3 | 9% | 6% |
1.0 | 1.3 | 36% | 57% |
4.5 | 4.9 | 9% | 20% |
7.8 | 8.2 | 5% | -2% |
3.6 | 3.6 | 0% | 22% |
15.4 | 15.5 | 1% | 3% |
4.6 | 4.5 | -3% | 31% |
4.3 | 4.2 | -1% | -1% |
4.4 | 5.1 | 16% | -10% |
2.1 | 1.6 | -22% | 2% |
0.2 | 0.1 | -67% | -48% |
0.2 | 0.1 | -30% | 785% |
3,079 | 3,061 | -1% | 18% |
FY2022 Apr-Sep35.8 4.3 1.7 8.0 16.2 5.7 28.8 6.9 8.1 10.6 3.3 0.6 0.1
2,589
FY2023 | |
Apr-Sep | YoY |
Change | |
39.4 10%
4.5 6%
2.3 41%
9.4 18%
16.0 -2%
7.2 27%
30.9 7%
9.1 32%
8.5 6%
9.5 -10%
3.7 11%
- -66%
- 171%
3,061 | 18% |
*Includes non-operating income / expenses and extraordinary income / expenses, excluding finance income / costs under Japanese GAAP
(e.g. Loss on sales / retirement of tangible / intangible assets).5 **The consolidated employee headcount from Q2 FY2022 onward includes DATA HORIZON CO., LTD., and from Q3 FY2022 onward includes Allm Inc.
Focus Points and Progress in Three Years Starting FY2021
- No change to the view for FY2023 announced at the beginning of the fiscal year (See slide 21)
- Continuing efforts to further grow our strengthened business portfolio and enhance the earnings base to achieve the structural shift for Serve to contribute about the same level of profit as Entertain
Long Term Structure Shift | Entertain | ||
(Profit, billion yen) | Aim to secure a good level of profit, | ||
despite volatility | |||
FY2022
Strengthened
business portfolio
Mid Term Strategy Start Year
(FY2021 results)
Serve | |||
FY2023 | | Aim to secure similar level of profit | |
contribution to Entertain | |||
Year-on-year revenue | |||
| Aim to achieve full year profitability in | ||
and non-GAAP | both Healthcare & Medical in FY2023 and | ||
operating profit | |||
20.0 billion yen in revenue and 5.0 billion | |||
increase (goal) | |||
yen in profit for the whole business in | |||
FY2024 | |||
| Aim to achieve profit contribution of | ||
Long Term Structure | approx. 3.0 billion yen per year in Sports | ||
& Community in the mid to long term | 6 | ||
(FY2024 onward) |
2. Entertain
7
Game Business: Results
- Revenue grew quarter-over-quarter due to new title launch at the end of June and existing title seasonality
- Business overall is continuing streamlined operations, and making progress on establishing a mid to long term structure for new development
FY2021
(2 new titles)
FY2022
(2 new titles)
FY2023
34.2 | 36.3 | 36.0 | 33.7 | Left: | |||||||
31.9 | |||||||||||
30.7 | Virtual currency consumption | ||||||||||
11.2 | 10.0 | 28.7 | (billion) | ||||||||
26.7 | 8.6 | ||||||||||
12.6 | 10.0 | 24.5 | Japan browser | ||||||||
9.6 | 10.5 | 22.5 | Japan app | ||||||||
9.1 | International app | ||||||||||
11.3 | 9.2 | 7.6 | |||||||||
Right: | |||||||||||
12.5 | 7.5 | ||||||||||
11.0 | 10.6 | Segment profit/loss | |||||||||
8.5 | 9.0 | ||||||||||
7.4 | 7.7 | (billion yen) | |||||||||
6.7 | |||||||||||
10.6 | 12.6 | 11.2 | 14.7 | 10.6 | 11.2 | 10.2 | 15.9 | 9.2 | |||
8.3 | |||||||||||
4.0 | |||||||||||
3.3 | 3.1 | 2.1 | 3.1 | 1.7 | 2.3 | 1.6 | 0.2 | 0.2 | |||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 |
8
Game Business: New Titles
HUNTER x HUNTER
Launched in Traditional Chinese regions in February 2023. License for launch in mainland China was granted in March, and plan to launch during FY2023
©︎P98-23 ©V・N・M
Captain Tsubasa
Scheduled for launch in some regions, including Traditional Chinese regions and Europe, in December 2023
©︎YOICHI TAKAHASHI/SHUEISHA, 2018 CAPTAIN TSUBASA COMMITTEE
takt op.
Launched in Japan and other countries in June 2023, and launched in mainland China in October
©DeNA/takt op. game partners
JUMP: Assemble
Traditional Chinese and Korean versions scheduled for launch primarily in Southeast Asia and East Asia (excluding Japan) from 2024, with other
Produced by JUMP / SHUEISHA region launches
subsequently planned
9
Live Streaming Business: Results
- Revenue growth primarily from Pococha Japan and IRIAM
- For Global Pococha continuing verification of appropriate operations for each region while optimizing investment
- Continuing to prioritize revenue growth while aiming to secure profitability for the segment in
FY2023 | Live Streaming | Live Streaming Business |
(billion yen)
Pococha Japan IRIAM Others (Global Pococha, etc.)
9.9 | 10.2 | 10.3 | 10.8 | 11.0 | |
9.6 | 0.3 | 0.3 | |||
0.3 | 0.3 | ||||
0.3 | 0.2 | 1.5 | 1.6 | ||
1.4 | 1.5 | ||||
1.3 | |||||
1.0 |
8.3 | 8.5 | 8.6 | 8.6 | 9.0 | 9.1 |
(billion yen)
Pococha Japan IRIAM Others (Global Pococha, etc.)
-0.2 | -0.2 | 0.1 | |||
-0.2 | -0.1 | -0.1 | |||
0.9 | 1.1 | 0.9 | 0.9 | 1.1 | 1.2 |
-0.3 | -0.4 | -0.3 | -0.2 | -0.4 | -0.4 |
-0.8 | -0.9 | -0.7 | -0.7 | -0.9 | -0.7 |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | |
FY2022 | FY2023 | FY2022 | FY2023 | 10 | ||||||||
*The revenue and profit/loss figures for each segment in the breakdown shown above are from management accounting for reference purposes.
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DeNA Co. Ltd. published this content on 08 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2023 14:58:06 UTC.
