DeNA Co. (2432) Q1 2025 earnings summary

Executive summary

• Q1 FY2024 revenue was ¥34.0 billion, down 6% year-over-year but up 4% sequentially; IFRS operating profit was ¥1.9 billion, up 10.5% year-over-year and 11% quarter-over-quarter, reversing a loss in Q4 FY2023.

• Non-GAAP operating profit increased 27% year-over-year and 39% quarter-over-quarter to ¥2.1 billion.

• Profit attributable to owners was ¥3.1 billion, up 20% quarter-over-quarter but down 34% year-over-year; EPS was ¥27.40.

• Cost of sales and SG&A expenses declined, mainly due to lower commission fees in Live Streaming and Game Businesses.

• Share of loss from associates was ¥173 million, compared to a one-time gain in the prior year from GO Inc.'s capital increase.

Financial highlights

• Gross margin for Q1 FY2024 was approximately 47.7%, slightly up from 47.4% a year earlier.

• Finance income/costs netted ¥2.7 billion, up 217% quarter-over-quarter; profit before tax was ¥4.5 billion, down 24.8% year-over-year but up 170% quarter-over-quarter.

• Operating cash flow was -¥10.8 billion; free cash flow was -¥23.5 billion; cash and equivalents at ¥71.4 billion.

• Total assets stood at ¥333.4 billion, with equity attributable to owners at ¥212.1 billion and a ratio of 63.6%.

• Net cash provided by operating activities was ¥7.1 billion, a turnaround from a ¥4.0 billion outflow a year earlier.

Outlook and guidance

• No quantitative forecast for FY2025 due to estimation difficulties; aims for year-on-year growth in revenue and operating profit, excluding one-off items.

• Focus on profit growth in Sports, Live Streaming, and Healthcare & Medical segments.

• Committed to JPY 15.0 billion non-GAAP operating profit by FY2026, with annual profit goals for healthcare/medical (JPY 5.0 billion) and sports (JPY 3.0 billion) over the next three years.

• Dividend forecast for FY2025 not determined; will be set based on performance progress.