DeNA Co., Ltd. (TYO:2432)
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May 7, 2026, 1:45 PM JST
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Earnings Call: Q4 2025

May 9, 2025

Shingo Okamura
President, CEO and Director, DeNA

[Translator] Hello everyone. I will be presenting today. Thank you for joining us for our presentation of the Operating Results Briefing for Fiscal Year 2024. First, I will start with our Fiscal Year 2024 summary. We have six key points. For Fiscal Year 2024, we achieved revenue of JPY 164 billion, a non-GAAP operating profit of JPY 32.9 billion, and an IFRS operating profit of JPY 29 billion. This marks significant growth from the previous fiscal year. Especially in the game business, Pokémon Trading Card Game Pocket, which launched in 150 countries and regions on October 30, 2024, achieved over 100 million downloads worldwide and contributed significantly to the increase in revenue and profit. Additionally, the sports business has grown well, driven by professional baseball, and revenue and profit increased. For the healthcare and medical business, we are thoroughly reviewing and promoting initiatives towards future growth.

Furthermore, we are enhancing initiatives for mid- to long-term growth centered on AI, including organizational support. For shareholder returns, Fiscal Year 2024 had upside factors such as the major hit of Pokémon Trading Card Game Pocket and others, leading to DeNA achieving a profit increase far exceeding expectations. In addition to the regular dividend, DeNA plans to pay a special cash dividend. As I already shared our financial results summary, I will skip this slide. For the financial results by segment, you can see the strong performance of the game business and sports business. I will discuss more later. Here is the cost and expense breakdown, and I would like to comment on two points. First, based on our Fiscal Year 2024 performance, we have recorded a payment of special bonuses that is included in personnel expenses. You can find this under SG&A.

Second, we recorded impairment losses in other expenses, mainly in assets related to the healthcare and medical business, such as goodwill for Data Horizon. I will touch on the status of this business later. That's it for the financial results summary. Now, I would like to discuss our progress for each of our businesses. First is the game business. As you can see, Poké Poké has contributed to a large increase in virtual currency consumption, which you can see in the graph on the left. There is solid contribution in Q3 and Q4. There is also a large increase in the segment profit loss graph on the right for Q3 and Q4. To share more about Poké Poké, this game launched on October 30, 2024, and it's off to a great start.

The game is available in 150 countries and regions, and is available in nine languages, including Japanese and English. The development of this game leverages the strengths of each of our partners, namely The Pokémon Company and Creatures. In February 2025, the game achieved 100 million downloads worldwide. The average MAU for Q4 was approximately 51 million. The game has a subscription, and the subscription rate is stable. Approximately 60% of the virtual currency consumption comes from international, clearly showing that a wide range of users are enjoying the game globally. In-game events, booster packs, and other updates are being released, and we intend to maintain long-term enjoyment for both Japanese and international users. Poké Poké is a classic example of DeNA's core competence, and I would like to elaborate on this.

DeNA has worked on Mobage and various other internet services, and based on our experience, we view games as services. We have successfully maintained or grown revenue over multiple years by sincerely listening to feedback from our users and implementing detailed measures and updates after release to keep up high engagement and continued use. We share two such examples below. Generally, most games tend to see declining performance after launch. For example, with Pokémon Masters EX, we grew performance in year three and went into the stable operation phase. On the right, we have Gyakuten Othellonia, which has been in long-term stable operation since launch. It's a great example of our live operations capabilities. This strength in live operations is something we have leveraged in our development.

We are able to link our live operations to our unique development framework that flexibly and appropriately reflects the strengths and inputs of our partners to the product. For Poké Poké, we are involved in development, and as someone who plays the game every day, I personally feel that the UX is easy to understand and intuitive. This is an achievement that came about as a result of frequent discussion with our partners. Going forward, we will continue building up various measures and improvements in the game, collaborate closely with our partners, and leverage our capabilities that we have gained to date to provide stable infrastructure operations for our large-scale MAU and ensure the service is enjoyed over the long term. That is it for the game business. Next is the live streaming business.

As I mentioned last time, we are placing a greater focus on profitability in the second half of Fiscal Year 2024 onward. For Poké Cha, we are reviewing the cost of marketing initiatives, etc., from the second half and focusing on securing profitability. For IRIAM, we are prioritizing sound community development and aiming to achieve revenue growth and early profitability. The downloads as of March 31, 2025, were 6.75 million for Poké Cha and 4.63 million for IRIAM. Next, let's look at the sports business. We had solid performance, particularly for professional baseball, with a year-over-year increase in revenue and profit. Looking at the graph on the left, you can see revenue and profit growth continuing since COVID. On the right, you can see how our attendance reached its highest-ever level, and we were the champions of the Climax Series and Japan Series.

It was a great year for us. In the sports business, we are leveraging our strengths to promote initiatives that will be the core of smart city development in Yokohama and Kawasaki, our home bases. Among these initiatives is the City of Yokohama Old City Hall District Development Project, which is right next to Yokohama Stadium. The name of this facility will be Base Gate Yokohama Kannai. The grand opening is coming up in spring 2026. The DeNA Group is directly operating an edutainment facility called Wonderia and a live viewing arena called The Live. We aim to make these initiatives successful in creating engagement next year and expanding our business from simple sports entertainment into smart city. We hope you look forward to it. Next is the healthcare and medical business.

The last business I'll talk about today, while revenue increased in Fiscal Year 2024, we are reviewing initiatives to pursue future growth. In the medical area in particular, the business model has been evolving from our initial expectations. Validating this may take time, but we continue to believe there is high potential, and we will continue our careful and flexible approach to maximize the growth potential. Let's look at each area.

[Foreign language] 慎重かつ柔軟に取り組んでいきたいというふうに総じて考えております。ではそれぞれの領域についてもう少し見ていきましょう。まずヘルスケア領域。

I'll start with the healthcare area. Please look at the graph on the left. Data use in particular, which is the dark green, has grown from Q1 to Q2, Q3, and Q4. Meanwhile, customer needs are diversifying and deepening. There are some challenges in our structure and product design that we need to work on to address those needs and achieve the next stage of growth.

For this reason, we have updated our growth expectations to a more gradual pace than initially anticipated. For data health, last year, Fiscal Year 2023, was the data health plan formulation year. For Fiscal Year 2024, we saw a number of orders similar to Fiscal Year 2022. The demand varies depending on the year, so we recognize that greater cost efficiency is needed for secure financial contribution. We are working on that in healthcare. Next is the medical area. The key here is the spread of Join, and the number of facilities using Join has grown to 597. For Join Mobile Clinic, which makes treatment possible virtually by combining portable medical devices and Join, in March we announced a partnership agreement with the NGO Japan Heart. This is beginning to steadily accumulate, including having some Join Mobile Clinic initiatives contributing in Q4.

Progress is slower than we initially expected, so we are taking time to establish the business model. In any case, as you can see on the right, we are expanding and evolving the business model centered on Join. In the context of evolving as a platform, we are exploring services and products to scale up. Now, in addition to my usual presentation, I would like to share more about our initiatives for mid- to long-term growth centered on AI. This is an important priority for us, so I would like to share some details. As you can see on the left, we have the spread of generative AI and a potential expansion of business opportunities. Progress is being made with general-purpose AI, and the business opportunities in physical and informational areas will continue to expand.

This is an area we have pursued to date, and we need to redouble our efforts. To symbolize this, we as the DeNA Group are going all in on AI. Specifically, we will be shifting personnel with the aim to achieve AI-driven productivity enhancement, AI-driven enhancement of competitiveness in our existing businesses, and AI new business creation and growth. That will be our approach. For AI-driven productivity enhancement, some examples of major progress to date include our mastery of cutting-edge AI development support tools, particularly among our engineers. One example of results we have already achieved is in Poké Cha, one of our major services, where screening the broadcasts is important. We have leveraged AI to reduce personnel time in screening, which resulted in a 60%+ reduction in the amount of screening by humans.

Going forward, we will be proactively pursuing initiatives to enhance our productivity, including deploying an AI agent platform that can be used by all employees as fits their work duties. In the Quality Management Department and other departments, we aim to reduce associated costs by half. Enhancement of competitiveness in our existing businesses is also important. We have examples of this already, such as in games, where we create many different stages for players, and we need to design the difficulty of the stage to be just right. We are leveraging AI to measure that difficulty and make this work more efficient. In sports, we have successfully quantified the command capabilities of the BayStars pitchers to assess where they are throwing the ball.

We use this data to help with decision-making for promotions to the primary team as one example, and it has been a great contribution on a practical level. In Smart City, I mentioned Wonderia, our new edutainment facility, and visitors will be able to enjoy a combined AI and real entertainment experience. In the future, we will be fully leveraging our DeNA data infrastructure that has been built up in our business areas and providing novel delight through bold use of generative AI. AI new business creation and growth is also key. There is already investment through Delight Ventures, and in Venture Builder, we have many examples of AI businesses getting started. In DeNA Proper, we are developing consumer and business-oriented products, although I cannot share details now. We are also looking at strategic investment in Japan and overseas, proactively leveraging M&A.

We also recently established a subsidiary called DeNA AI Link with the aim of expanding the Japanese company support business. We aim to leverage AI to enhance productivity and contribute to Japan as a whole. We also have AI-driven value enhancement in existing businesses and deploying the most cutting-edge AI services from Japan and around the world. These are some areas where we hope to contribute. Next is DeNA Core Competence Supporting Growth Centered on AI. There are two things here: AI expert team and leveraging in-house data infrastructure. In our expert team, we have people with high specialist knowledge who can handle functions from planning through implementation. Even more than that, the emphasis is on how they can leverage AI to contribute to the business. We have 100 people already engaged in agile initiatives and contributing to promote AI efforts across the company.

We are currently enhancing our data infrastructure that was accumulated in our various business areas, and we are pursuing innovation in existing businesses and creation of new businesses that leverages this strength to the max. Now, I would like to move on from our businesses and touch on the financial highlights and outlook. First, under financial highlights, we have our special cash dividend. I would like to touch on shareholder returns and dividends. For our basic policy, while considering the performance of each fiscal year, DeNA sets as a minimum whichever is higher, a consolidated payout ratio of 15% or an annual dividend of JPY 20 per share of DeNA's common stock. We are aiming for a consolidated payout ratio of 30% in the future. In Fiscal Year 2024, we achieved a profit increase far exceeding our expectations.

In addition to the regular cash dividend, there will be a special cash dividend paid. In total, this is a consolidated payout ratio of 30%. Returning profits to shareholders is an important management priority for DeNA, and in line with that, we have decided on this dividend. For future dividends, we also need to consider the growth investment outlined in our midterm strategy. We will need a good balance with that, as well as business performance trends, financial conditions, and other factors, and we will make our determination comprehensively. Next is the outlook for Fiscal Year 2025. We plan to resume our results forecast announcement. However, due to the difficulty of reasonably and accurately estimating the figures at this time, we plan to disclose the information promptly as soon as disclosure is possible.

Especially in the game business, it is difficult to reasonably estimate the figures, including the trends of Poké Poké . Of course, it is currently performing solidly, and we are aiming for live operations that will enable the title to contribute long term. It is a game, and it is expected that there will be a short-term reaction from the initial performance. In any case, this is a game at an unprecedentedly large scale, so we intend to be very careful with how we proceed. As for new titles, DeNA plans to have a pipeline primarily based on new approaches, including the soft launch strategy, rather than conventional development methods in Fiscal Year 2025 and beyond. No new titles based on conventional development have been announced at this time. Finally, we have addressing capital market requirements. I have touched on some points already, but I will summarize here.

Ensuring management that is conscious of cost of capital and the stock price is, of course, important. In our Fiscal Year 2023 operating results disclosed on May 8, 2024, we shared our key focus for the next three years. This has not changed. To add, looking to the right, our earnings recovered in Fiscal Year 2024, leading to an ROE of 11%, solving the issue of having a PBR less than 1x. Under our AI all-in approach, we are accelerating our strategy to date by enhancing initiatives leveraging AI, while also appropriately allocating management resources to form a business portfolio that can achieve structural and continued growth. First, we plan to resume disclosure of our financial results forecast in Fiscal Year 2025 to assist investment decisions. We are also proactively considering the disclosure of KPI, etc., to facilitate better understanding of the state of each business going forward.

We hear the feedback and requests of the capital market, and will not just stop there. Going forward, we will prioritize the enhancement of capital efficiency and ROE, with awareness of capital cost. We appreciate your support. Today, I went a little longer than usual, but this concludes my presentation. Thank you.

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