DeNA Reports Highest Quarterly Revenue to Date at $609 Million
TOKYO, JAPAN - August 9, 2012- DeNA Co., Ltd. (2432.T), a leading global Internet company, has announced today its financial results for the quarter ended June 30, 2012. DeNA reported record-high quarterly revenue of $609 million*, 37 percent higher than same quarter last year, and operating profit of $235 million, 22 percent higher than the same period of the previous year.
DeNA reported that consumption of Moba-coin, the company's virtual currency, was a record $689 million on Mobage's domestic network in Japan, despite the recent regulatory concerns over the complete gacha game mechanic. In Japan, DeNA participated in establishing the Social Game Platform Liaison Council, which determined a set of guidelines for social games. DeNA removed the mechanic from its games in May, and third-party games followed prior to July 1. DeNA stated engagement and virtual currency usage increased steadily and offset the impact of the changes. Monthly Moba-coin consumption in Japan was consistent, at around $230 million, in April, May and June as well as in July. Based on this trend, DeNA forecasts quarter-on-quarter increases in revenue and operating profit of $24 million and $14 million, respectively, in the quarter ending September 30.
"Our first financial quarter of the year marked our highest global revenue to date, as well as proof positive that we are beginning to see a thriving business in the West," Isao Moriyasu, President and CEO of DeNA, said. "We are squarely focused on our goal of building the world's top social games platform. We will achieve this by continuing to refine our technology, building the strongest game portfolio through internal studios as well as third parties and great IP partners, and serving our customers through our platform worldwide."
Rage of Bahamut, an English-language title developed by Japan's Cygames for Mobage's worldwide platform, led both the Android and iOS top-grossing charts in the U.S., contributing a significant increase to virtual currency consumption across the network. The title has maintained its number-one position on the U.S. Google Play's top-grossing chart for over 17 consecutive weeks, which emphasizes the potential of Mobage in the West and confirms DeNA's approach to building hit titles. In addition, DeNA's popular first party games such as Blood Brothers and Ninja Royale reached average revenue per daily active user (ARPDAU) peaks of around $1 during the quarter, once more demonstrating the overall success of the platform. Mobage continues to expand with an impressive portfolio, now topping 50 titles across Android and iOS.
While DeNA saw a significant increase in revenue in the first quarter, the company also made concentrated investment in marketing for titles showing high revenue metrics and other key performance indicators. In addition to successful developments across DeNA's global businesses, the company's overall revenue increase was helped by Mobage Japan's strong performance and the consolidation of the corporation's baseball team, the Yokohoma DeNA BayStars. Costs were higher than the previous quarter mainly due to increases in revenue share for games with partners and advertising expenses.
In the second quarter, DeNA aims to further drive engagement and usage in the West for Mobage. The company will continue to build upon the combination of successful game mechanics developed in Japan, matched to Western tastes and play patterns. DeNA will continue to develop a slate of key titles and inject the Mobage knowledge into first-party, original, licensed, co-developed, and third party games to grow the platform. The mobile social games leader has already announced highly anticipated titles for 2012, based on major IP worldwide, including Marvel and Transformers.
* Dollar values reported were translated at 78.16 Japanese yen per U.S. dollar, which was the Telegraphic Transfer Middle Rate (TTM) per the Bank of Tokyo-Mitsubishi UFJ as of August 7, 2012.