DeNA Co. (2432) Q2 2025 earnings summary

Executive summary

• Q2 FY2024 revenue was ¥36.3B, up 7% sequentially but down 7% year-over-year; operating profit (IFRS) rose to ¥3.6B, up 87% sequentially and 17% year-over-year.

• First half FY2024 revenue totaled ¥70.3B, down 6.5% year-over-year, with operating profit rising 14.4% to ¥5.5B.

• Net profit attributable to owners was ¥2,999 million for the first half, down 59.5% year-over-year, with EPS at ¥26.94.

• Significant cost control and profitability improvements in core businesses, especially games and sports.

• Finance costs increased due to exchange rate fluctuations, and share of loss from associates replaced a prior-year gain.

Financial highlights

• Non-GAAP operating profit for Q2 was ¥4.0B, up 90% sequentially and 35% year-over-year.

• Net profit attributable to owners fell 59.5% year-over-year to ¥2,999 million.

• Basic EPS for the first half was ¥26.94, down from ¥66.48 a year earlier.

• Cash and cash equivalents at September 30, 2024, were ¥71.4B, down from ¥84.2B a year earlier.

• Operating cash flow for the first half was -¥10.8B; free cash flow was -¥23.5B.

Outlook and guidance

• Full-year revenue and non-GAAP operating profit are expected to increase year-over-year, but no consolidated forecast is provided due to estimation difficulties.

• Dividend forecast for FY2025 is undecided; interim dividend set at ¥20.00 per share.

• Focus on cost efficiency and profitability in the second half, especially in live streaming and healthcare.

• Game Business expects impact from China downsizing and plans to release about three new titles.