Thank you very much for taking the time to join us for the financial results briefing despite your busy schedules. Our explanation will follow the agenda outlined on page two. Please turn to page three for the executive summary. We are going to provide more details now. Please turn to page four. First, our CFO Shimamura will explain the financial status.
I am Shimamura, CFO of MIXI. Please turn to page five for the quarterly consolidated income. For Q4, net sales was JPY 54.9 billion, EBITDA was JPY 13.2 billion, operating income was JPY 9 billion, ordinary income was JPY 9.6 billion, and the profit attributable to owners of parent was JPY 6.7 billion.
Net sales increased by 23.5% year-on-year, and EBITDA increased by 19.6% due to favorable performance of betting business and the recent consolidation of PointsBet. On the other hand, operating income decreased by 5% year-on-year. This was mainly due to increased amortization expenses such as goodwill associated with the consolidation of PointsBet and the completion of the purchase price allocation or PPA process, which was reflected in the results. I will explain the details later. Please turn to page 6 for the full year consolidated income. Net sales was JPY 171.3 billion, EBITDA was JPY 31.1 billion, operating income was JPY 22.2 billion, ordinary income was JPY 24.7 billion, and profit attributable to owners of parent was JPY 17.2 billion.
The primary driver of the net sales increase was the significant growth in the betting business, including the consolidation of PointsBet. On the other hand, EBITDA decreased by 1.6% year-on-year, affected by the lower sales from Monster Strike and the absence of the large gain on sale recorded in the investment business in the previous fiscal year. Operating income decreased by 16.3% year-on-year due to the recognition of goodwill amortization related to the acquisition of PointsBet. However, profit attributable to owners of parent remained on par with the previous year due to foreign exchange gains and adjustments for non-controlling interests in PointsBet's amortization expenses. Please turn to page seven. This is the quarterly consolidated performance trend. Please turn to page eight. I will now explain the business status by segment. Please turn to page nine for a review of the sports segment.
Net sales increased 98.7% year-on-year to JPY 23.4 billion. The main factors for the sales growth were the recent consolidation of PointsBet, as well as increased betting ticket sales. EBITDA increased by 258.1% year-on-year to JPY 3.1 billion. This was due to growth in betting ticket sales for Chariloto and comprehensive outsourcing fees for Keirin stadiums, as well as decreased costs related to the acquisition of PointsBet. In the spectator sports business, net sales grew for both the Chiba Jets and FC Tokyo, and profitability is improving. Please turn to page 10 for the goodwill and amortization expenses related to the acquisition of PointsBet. PPA has been finalized and the breakdown of goodwill and intangible assets is as shown on the slide.
With recognition of software expenses to be amortized over four years as an intangible asset, the current amortization expenses was higher than initially anticipated at the time of the acquisition. In Q4, we made retroactive adjustments for Q3. From the fifth consolidated fiscal year onward, when the amortization of this software is complete, the impact on PL will significantly decrease. Therefore, we expect PointsBet's contribution to operating income will be materialized sooner. Please note that while the total of goodwill and intangible assets exceeds the acquisition cost, goodwill is recognized on the balance sheet in proportion to our ownership interest. Whereas intangible assets are recognized in full and the non-controlling interests are adjusted under net assets in the consolidated financial statements. Also, for amortization expenses, amortization of intangible assets is recognized entirely as SG&A expenses and non-controlling interests are adjusted downward under income tax expense and other items.
Please turn to page 11 for the status of spectator sports business. The Chiba Jets have further enhanced their ability to attract fans, setting a new club record for the number of spectators. FC Tokyo has reached a basic agreement to merge with Sfida Setagaya FC, a women's soccer club based in Tokyo. We aim to enhance our presence as a club representing Tokyo by expanding our efforts to include women's soccer in addition to the men's top team and academy. Please turn to page 12. This page shows the trend in net sales from major services in the betting business. Net sales increased significantly by 126.1% year-on-year with the addition of PointsBet. Even excluding this consolidation, net sales maintained robust growth with an increase of 55.7% year-on-year.
Net sales for Chariloto increased 71.4% year-on-year due to growth in betting ticket sales, as well as the recognition of one-time revenue from outsourcing contracts for Keirin stadiums renovation. Net sales for TIPSTAR increased by 55.8% year-on-year with continued increase in MAU from Q3. Please turn to page 13. I'll explain MAU and social action rate of TIPSTAR, as well as the status of net sales portfolio of Chariloto. They are the key KPIs for the betting business. For TIPSTAR, we view MAU and social action rate as key indicators that lead to improved user engagement and retention rates. MAU exceeded 200,000 this quarter. The social action rate has been on the rise due to increased use of features that allow users to interact with each other, such as the chat function.
We'll continue to expand our user base by strengthening the unique social experience of TIPSTAR. Net sales of Chariloto has been growing steadily, driven by comprehensive outsourcing revenue. We will continue to expand its scale of business by growing comprehensive outsourcing revenue, which serves as a stable revenue source together with betting ticket sales. Please turn to page 14 for the annual profit and loss trend for the sports segment. Net sales has achieved significant growth with CAGR of 37% over the five years. EBITDA has exceeded JPY 5 billion, establishing this segment as our second pillar following digital entertainment. We will continue to accelerate upfront investments in businesses such as TIPSTAR while aiming for steady profit growth in the entire segment. Please turn to page 15. Next, I will explain the lifestyle segment. Please turn to page 16.
Net sales increased by 31.4% year-on-year to JPY 4.4 billion. The primary driver of the growth was the strong sales in focus areas of FamilyAlbum, including GPS. EBITDA deficit reduced year-on-year. Typically, in Q4, our cost structure deteriorates due to discounted sales of GPS, but earnings improved in this Q4, thanks to increased net sales in the focus areas. Please turn to page 17 for key KPIs for FamilyAlbum. I'll explain the trend in sales composition by product, MAU, and engagement. We have included advertisements in our focus areas for FamilyAlbum this time, in addition to the existing items of GPS, photo prints, and FamilyAlbum Premium. Net sales from these focus areas increased by 37.5% year over year. The number of users has reached 30 million, and MAU has reached 12 million, indicating that the service is growing steadily.
In this briefing, we have started to disclose the number of comments and stickers posted in FamilyAlbum for the first time. The number of posts is increasing, and in addition to sharing photos and videos, the service is steadily growing as a platform of communication among family members. Please turn to page 18 for the annual profit and loss trend for the Lifestyle segment. Net sales has grown steadily with a five-year CAGR of 20%. This is due to growth in our focus areas despite shrinking sales related to New Year's cards of FamilyAlbum. EBITDA turned profitable as initially expected due to the growing number of families using FamilyAlbum Premium Plan, GPS Guardian, and photo prints. Please turn to page 19. I'll now explain the Digital Entertainment segment. Please turn to page 20.
Net sales decreased 8.5% year-on-year to JPY 26.2 billion. Although MAU of Monster Strike decreased year-on-year, ARPU increased due to the new year sales of character goods, TV broadcasting of anime in Q3, and collaborations with popular IPs, mediating the downward trend seen through Q3 to a certain extent. EBITDA increased by 1.2% year-on-year to JPY 16 billion. This was due to the progress in cost optimization driven by the increased utilization rate of the Monster Strike WEB Shop to over 50%. Please turn to page 21 for the status of Monster Strike. As a new initiative to recover MAU, we held our first half anniversary event in late March. We are also implementing UI/UX improvements to increase the retention rate of new users in stages, and that is planned to be completed by the end of this fiscal year.
We will continue to work on recovering MAU through various measures. Please turn to page 22 for STRIKE WORLD. We launched full-scale operations of STRIKE WORLD in India in April. We are improving the network performance, promoting gameplay, and enhancing the multiplayer experience while monitoring market reactions. The local event in May was a great success, attracting a large number of attendees. We have also announced a collaboration with Shangri-La Frontier. Going forward, we will continue to strive for growth in the Indian market as we expand our touchpoints with users through initiatives like these. Please turn to page 23. I'll explain the annual profit and loss trend for the digital entertainment segment. The five-year CAGR for net sales remained at minus 2%, maintaining a high level. EBITDA grew to a five-year CAGR of 3% with improved cost efficiency.
We will continue to make solid investments, including various initiatives and collaborations with attractive IPs, aiming to further extend the lifespan of Monster Strike. Please turn to page 24 for our investments. Please turn to page 25. We recorded JPY 800 million in net sales and a loss of JPY 400 million in EBITDA due to the consolidation of gains and losses from our investment funds. Full year EBITDA remained in the black at JPY 1 billion. Please turn to page 26 for utilization of AI. Please turn to page 27. We have worked to embed AI not as a tool used only by a select few specialists, but as a business infrastructure utilized daily by all employees.
As a result, in FY 2026, our company-wide AI utilization rate exceeded 99%, reducing monthly workloads by approximately 17,600 hours and achieving annual cost reductions of approximately JPY 1 billion. Furthermore, we share the insights gained from these initiatives externally through events we host, contributing to the broader adoption of AI, including among our partners. We will continue to pursue efficiency improvements based on AI and allocate the freed up resources to the development of new services and the improvement of service quality. Please turn to page 28. From this page, Mr. Kimura will explain the medium-term vision of our company. Please turn to page 29. Since its founding, MIXI has operated businesses in areas where communication with family and friends takes place, such as social networking, games, and sports. We have redefined this economic sphere as WeTime Economy.
Today, I will explain our future vision of how MIXI intends to grow its business centered on this WeTime Economy. Please turn to page 30. First, let me explain WeTime Economy. Advances in AI and digital technology are driving greater efficiency in society and creating more leisure time for people than ever before. We believe this shift will function as a tailwind for the entire leisure market. On the other hand, as AI expands the range of content options, the time and energy spent on each content are more scattered. That is why what will become increasingly important is not just what we enjoy, but with whom we enjoy it. For example, don't you think photos taken with family and friends feel more precious than beautiful photos generated by AI? It is not just the content itself that creates value, but who you spend that time with.
In sports, cheering with your friends creates excitement, leading to increased live attendance and merchandise sales. In gaming, excitement with friends leads to longer play times and higher spending. For anime and IPs, having friends to discuss your favorite characters with drives greater consumption of merchandise and event tickets. The more AI evolves, the greater the value of the time people spend together becomes, and we believe that these connections will generate significant consumption. We have long operated our business in this economic sphere as a primary arena. We have now redefined this economic sphere as WeTime Economy. In this massive market exceeding JPY 10 trillion, we will accelerate value creation by leveraging our strengths. Please turn to page 31. I'll explain our path to success in the WeTime Economy. MIXI has achieved strong unit economics by combining compelling content with social human networks.
Since the service spreads naturally through word of mouth, it is easier to keep user acquisition costs low, and user retention rates increase as they use them with family and friends. Furthermore, the excitement generated by shared experiences drives usage and consumption. In fact, at its peak, the social networking service mixi achieved a profit margin of approximately 40%, and Monster Strike exceeded 60%. This structure is MIXI's competitive advantage in the WeTime Economy. Please turn to page 32. From here, I'll explain our business portfolio and growth strategy in the WeTime Economy. Please turn to page 33. First, in the sports segment, we aim to achieve sales of over JPY 120 billion. Sports is currently our fastest growing segment. In Japan, we are increasingly differentiating ourselves through the social features of TIPSTAR.
Going forward, we will strengthen our marketing investments to expand our user base and business scale. Overseas, we will accelerate the growth of PointsBet. We'll combine the social betting expertise cultivated through TIPSTAR with PointsBet's technology to tap into Australia's large sports betting market. To unlock further growth potential, we'll pursue M&A opportunities aimed at expanding social betting as well as business opportunities arising from changes in the market environment. We will expand WeTime, enjoying time with friends through sports. Please turn to page 34 for the lifestyle segment. We will expand WeTime experience centered on FamilyAlbum and target sales of over JPY 40 billion. In FamilyAlbum, we will improve profitability by increasing the proportion of net sales from digital products such as subscriptions and advertising. Overseas, we will continue to acquire users while strengthening monetization strategies tailored to each country, aiming for sales growth and early profitability.
To unlock further growth potential, we will also promote new business development and M&A. Please turn to page 35 for the digital entertainment segment. In Japan, we will enhance the value of the Monster Strike IP through investment in anime and other media. This will help us maintain and strengthen our business foundation over the medium to long term. Overseas, we will continue to develop new markets through the expansion of STRIKE WORLD in India. By combining the know-how we have cultivated in Japan with collaborations featuring Japanese IPs, we will provide WeTime that local users can enjoy with family and friends. While maintaining our domestic Monster Strike business and implementing new initiatives such as STRIKE WORLD, we aim for sales of over JPY 90 billion from existing businesses.
As for further growth potential, we aim to generate hit titles with the industry leading team of creators who have joined MIXI since FY 2026. Please turn to page 36. From this page, Mr. Shimamura will explain our financial targets and financial and governance strategies that will support growth of the WeTime Economy. Please turn to page 37. I'll explain the financial targets in our medium-term vision. First, we aim to double net sales achieved in FY 2026. In particular, we will focus on achieving an average annual net sales growth of 10% in key investment areas such as social betting and FamilyAlbum. For profits, we aim to improve profitability in the sports and lifestyle businesses. In addition, we will further streamline operations using AI and review our business portfolio to achieve an EBITDA margin of 20% and significantly transform our profit composition.
Furthermore, by improving margins and financial leverage, we aim to achieve ROE of 15%. Please turn to page 38. Next, I will explain our capital allocation policy. There are no major changes to our basic policy, and we will continue with the approach outlined in our FY 2024 full year financial results. By prioritizing growth investments to increase profits, we aim to provide greater returns to shareholders. If there are few investment opportunities that meet our criteria, we will allocate those funds to shareholder returns to balance growth orientation and capital efficiency. Please turn to page 39 for our approach to business portfolio management. We manage each business based on two axes, growth potential and excess return on capital, and classify them into four stages. Based on this classification, we clarify investment priorities and aim for high rates of return through efficient capital allocation.
As a general rule, we seek returns that exceed WACC and make decisions with discipline. Please turn to page 40. Next is about shareholder return policy. To date, in order to provide stable returns that are not dependent on profit levels, we have maintained or increased dividends with a target DOE of 5%. Furthermore, recognizing the improvement of ROE as a key priority recently, we have implemented shareholder returns targeting a total payout ratio of 100% to achieve an appropriate capital level. As a result, in FY 2026, the three-year average ROE reached a level that exceeds the cost of shareholders' equity. Therefore, considering the transition to a profit growth phase in the future, we'll place greater emphasis on the dividend payout ratio.
Specifically, while maintaining our dividend criteria based on DOE, we will raise the target dividend payout ratio from 20%-4 0%, making it easier to reflect profit growth in shareholder returns. Please turn to page 41. I will explain about strengthening corporate governance. To achieve our medium-term vision with discipline, we are enhancing the effectiveness of governance related to the nomination and compensation of directors. We have appointed an independent outside director as chair of the Nomination and Compensation Committee to enhance objectivity in the evaluation and selection of directors. We also have strengthened our director evaluation mechanisms by introducing a peer review system that involves outside directors. In the compensation system, we are revising it to be linked more closely to the medium-term vision for more alignment of interests with shareholders.
This system is scheduled to be submitted for approval at the general meeting of shareholders in June. This concludes the explanation of our medium-term vision. Please turn to page 42. I will explain our financial results forecast for FY 2027. Please turn to page 43. Our forecast for FY 2027 is as follows: Net sales of JPY 185 billion, EBITDA of JPY 31.5 billion, operating income of JPY 19.5 billion, ordinary income of JPY 20 billion, and profit attributable to owners of parent of JPY 13.5 billion. We expect both net sales and EBITDA to increase year-on-year due to the full year consolidation of PointsBet, as well as growth in the sports and lifestyle segments. Operating income is expected to decline due to upfront investments in digital entertainment and increased amortization expenses associated with the consolidation of PointsBet.
Excluding those upfront investments, it is expected to exceed the previous fiscal year based on the performance of existing businesses. Ordinary income and profit attributable to owners of parent are expected to decline due to the absence of one-time positive effects from the previous fiscal year, such as foreign exchange gains. The plan indicates decline in profit on the surface, the profitability of our existing businesses is steadily improving with sufficient growth investments. Please turn to page 44. I will now explain the details of our results forecast. Both sales and profit for the sports segment are expected to increase substantially with net sales of JPY 86 billion and EBITDA of JPY 9 billion. Net sales for the sports betting business is expected to increase due to the full year consolidation of PointsBet and the strong performance of TIPSTAR and other businesses.
EBITDA is expected to increase due to the full year consolidation of PointsBet and the growth of the existing sports betting business. The spectator sports business is estimated to decrease both sales and profit with a conservative plan excluding such as transfer fee income. Please turn to page 45. For the lifestyle segment, sales is expected to increase driven by user base expansion and stable monetization rate in FamilyAlbum. EBITDA is expected to increase significantly as profitability improves due to growth in the focus areas. In the digital entertainment segment, based on the recent performance of Monster Strike, we anticipate a decline in both sales and profits. We do not include sales for STRIKE WORLD in this forecast as it has just started full scale operation, and we anticipate upfront investments of JPY 3.5 billion, including costs for other business development initiatives.
Finally, while there will be increased costs associated with strengthening our organizational structure for globalization, adjustments are expected to remain flat as we factor in cost reductions resulting from the utilization of AI and other measures. Please turn to page 46. Our policy is to focus on investment for business growth while continuing to provide stable shareholder returns. In accordance with our policy, we plan to pay an annual dividend of JPY 120 per share for FY 2026, and we anticipate increasing the dividend to JPY 125 per share for FY 2027. Finally, Mr. Kimura will provide a summary.
I believe that MIXI is currently in its third founding phase. The first founding phase was the launch of the social networking service mixi, and the second was the debut of Monster Strike. In this upcoming third founding phase, the businesses we have nurtured using cash generated by Monster Strike will become profitable and will be deployed globally. We believe this will significantly increase the scale of sales and profit of MIXI. We would appreciate your continued support. Thank you.