TOKYO--(BUSINESS WIRE)--DeNA Co., Ltd. (2432.T), the leading global online service company, has announced that its net sales performance, during the quarter ended Dec. 31, 2011, was approximately $448 million*, 16 percent higher than the same quarter of the previous year. Operating income, in this period of investment, was reported at $178 million*, eight percent lower than the same quarter of the last fiscal year.
Consumption of Moba-coins, the virtual currency on DeNA’s Mobage social gaming platform, grew to a record high with strong contribution from third party games. The company also entered a period of added focus around first party and collaborative games, which has accelerated the momentum of Moba-coin consumption, in a trend especially pronounced since January 2012. Other highlights during the quarter included Mobage Global’s expansion and DeNA’s acquisition of the controlling stake in a Japanese pro-baseball team, now named Yokohama DeNA BayStars.
“We have been focused expressly on executing our cross-border, cross-device strategy for Mobage,” Isao Moriyasu, President & Representative Director of DeNA, said. “In recent months, we pushed Mobage across new territories and mobile platforms. Our growth in the quarter was led largely by third party games, and we recently regained focus in first party and collaboration games; we are now expecting even further growth in Japan. Additionally, we are very excited about our buy-in to the Yokohama DeNA BayStars - a great team we are proud to support and build upon the synergies of our businesses.”
During the quarter, DeNA’s Moba-coin consumption rose, despite a brief slowdown in November, to a record high, passing $536 million*. Moba-coin consumption has been steadily growing since February 2011 and increased momentum is expected through first party and collaboration games. Mobage continued to expand at a steady pace, reaching nearly 36 million users and more than 1,300 social game titles in Japan alone, by the end of the quarter. Player data shows a broad adoption of Mobage, with a 60/40 percent male/female ratio, as well as an increasingly mature and financially able audience, with 44 percent of the user base in their thirties and above.
DeNA also bought a reputable Japanese pro-baseball team, rebranding the outfit as Yokohama DeNA BayStars. The company reported an $8.5 million* cost of acquisition and a $3.9 million* security payment to Nippon Professional Baseball Organization for the transaction. DeNA expects that the baseball team and DeNA’s core businesses will mutually enhance their offerings to consumers.
Cross-border progress in the reported quarter included readying the Chinese platform for iOS, following the Android launch earlier in the year, as well as alliances with major networks in China, including Kaixin001, NetDragon, Alibaba, Baidu and China Unicom. Similarly, DeNA made strides in Korea, driving toward a Jan. – Mar. quarter platform launch with a great games lineup and a partnership with Daum to build audience.
DeNA also announced today that the company would raise annual dividends for the fiscal year ending March 2012 by two yen to 36 yen per share, mainly due to expected higher net income. The company will also repurchase up to five million shares or shares worth 10 billion yen, aiming to increase capital efficiency, to implement a flexible capital policy that responds to the changing business environment, and to improve shareholder returns.
The priority initiative charted for the final quarter of the fiscal year, which began Jan. 1, 2012, will be strengthening the Mobage game catalogs with original and third party games worldwide. In Japan, DeNA plans to increase promotion of flagship titles, leverage the DeNA BayStars for Mobage content and boost appeal to the maturing gamer demographic.
Since the quarter ended Mobage Global has already increased engine support, announced Mobage for iOS on the horizon, and opened a studio in Canada. Since the close of the reported quarter, DeNA has also reported that Mobage Global has seen both first and third party games soar into the top charts.
* Dollar values reported were translated at 76.24 Japanese yen per U.S. dollar, which was the Telegraphic Transfer Middle Rate (TTM) per the Bank of Tokyo-Mitsubishi UFJ as of Feb. 3, 2012.
About DeNA
DeNA Co., Ltd. is a world-leading online service company, and operates Mobage social gaming platform, social networking services and e-commerce websites. Drawing on its extensive community base and rapidly expanding developer line-ups, Mobage currently serves over 35 million users in Japan with more than 1,800 game titles for smartphones, feature phones as well as PCs. The company generated annual sales of more than 1.3 billion U.S. dollars in fiscal year ended March 2011. To expand the Mobage platform globally, DeNA is building a presence in the US, Europe, China and South Korea. DeNA is listed on the Tokyo stock exchange (2432). For more information, visit www.dena.jp/intl.
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