DeNA : Consolidated Financial Results for the Three Months Ended June 30, 2020
08/05/2020 | 02:07am EST
The following information was originally prepared and published by the Company in Japanese as it contains timely disclosure materials to be submitted to the Tokyo Stock Exchange. This English translation is for your convenience only. To the extent there is any discrepancy between this English translation and the original Japanese version, please refer to the Japanese version.
Contact: Jun Oi, Managing Executive Officer (CFO), Head of the Corporate Unit
Phone: +81-3-6758-7200
Scheduled date of filing quarterly securities report: August 6, 2020
Scheduled date of commencing dividend payments: ―
Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: Yes (for institutional investors, analysts and the press)
(Amounts are rounded to the nearest million yen.)
1. Consolidated Financial Results for the Three Months Ended June 30, 2020 (from April 1, 2020 to June 30, 2020)
(1) Consolidated Operating Results
(% changes from the previous corresponding period)
Revenue
Operating profit
Profit before tax
Profit for the period
Millions of yen
%
Millions of yen
%
Millions of yen
%
Millions of yen
%
Three months ended
30,041
(4.3)
12,570
442.1
14,462
274.4
9,867
285.4
June 30, 2020
Three months ended
31,383
(7.5)
2,319
(54.6)
3,863
(48.4)
2,560
(53.5)
June 30, 2019
Profit for the period
Total comprehensive
Basic earnings
Diluted earnings
attributable to
income for the period
per share
per share
owners of the parent
Millions of yen
%
Millions of yen
%
Yen
Yen
Three months ended
9,902
304.7
18,317
51.8
79.86
79.75
June 30, 2020
Three months ended
2,447
(53.2)
12,067
―
16.83
16.81
June 30, 2019
(2) Consolidated Financial Position
Total equity
Ratio of equity
Total assets
Total equity
attributable to
attributable to
owners of the parent
owners of the parent
Millions of yen
Millions of yen
Millions of yen
%
As of June 30, 2020
285,582
198,151
194,353
68.1
As of March 31,
255,740
187,319
180,486
70.6
2020
2. Dividends
Dividends per share
End of 1st
End of 2nd
End of 3rd
End of
Total
quarter
quarter
quarter
year
Yen
Yen
Yen
Yen
Yen
Fiscal year ended
―
0.00
―
20.00
20.00
March 31, 2020
Fiscal year ending
―
March 31, 2021
Fiscal year ending
March 31, 2021
―
―
―
―
(Forecast)
(Notes) 1. Revisions to recently announced dividend forecast: No
2. The dividend forecast for the fiscal year ending March 31, 2021 has not been determined at this time.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
The consolidated financial results forecast for the fiscal year ending March 31, 2021 cannot be provided due to the difficulty of reasonably & accurately estimating the figures.
* Notes
Changes in Significant Subsidiaries during the Period under Review (changes in specified subsidiaries accompanying changes in scope of consolidation): No
Changes in Accounting Policies and Changes in Accounting Estimates
Changes in accounting policies required by IFRS: No
Changes in accounting policies other than 1) above: No
Changes in accounting estimates: No
Number of Shares Issued (common stock)
Total number of shares issued at the end of the period (including treasury stock):
As of June 30, 2020
130,210,945 shares
As of March 31, 2020
150,810,033 shares
2) Total number of shares of treasury stock at the end of the period:
As of June 30, 2020
6,718,442 shares
As of March 31, 2020
25,310,018 shares
3) Average number of shares during the period:
Three months ended June 30, 2020
123,993,459 shares
Three months ended June 30, 2019
145,377,635 shares
(Note) The 207,895 shares of the Company's stock owned by the Stock Grant ESOP Trust account are included in the "Total number of shares of treasury stock at the end of the period" as of June 30, 2020, and the 211,583 shares of the Company's stock owned by the same trust account are included in the "Total number of shares of treasury stock at the end of the period" as of March 31, 2020.
This report of quarterly consolidated financial results is outside the scope of quarterly review by a certified public accountant or accounting auditor.
Explanation of the Proper Use of Financial Results Forecast and Other Notes
(1) Consolidated Financial Results Forecast
The forward-looking statements herein are based on information available to the Company and certain assumptions deemed reasonable as of the date of publication of this document. They are not intended as the Company's commitment to achieve such forecasts, and actual results may differ significantly from these forecasts due to a wide range of factors.
(2) Dividend Forecast
The Company plans to set the cash dividend forecast for the fiscal year ending March 31, 2021 considering the overall progress in performance and other factors, and promptly announce said expected dividend amount.
(3) Method of Obtaining Supplementary Briefing Material on Financial Results
The Company is planning to hold a briefing session for institutional investors, analysts and the press on August 5, 2020. The briefing materials to be distributed at the session are scheduled to be posted on the Company's website at the appropriate time for disclosure. In addition, videos and primary Q&A of the briefing session are scheduled to be posted on the Company's website at a later date shortly thereafter.
Appendix
1. Overview of Operating Results and Financial Position
2
(1)
Overview of Operating Results
2
(2)
Overview of Financial Position and Cash Flows
3
(3)
Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
4
2. Condensed Consolidated Financial Statements and Principal Notes
5
(1)
Condensed Consolidated Statement of Financial Position
5
(2)
Condensed Consolidated Income Statement
7
(3)
Condensed Consolidated Statement of Comprehensive Income
8
(4)
Condensed Consolidated Statement of Changes in Equity
9
(5)
Condensed Consolidated Statement of Cash Flows
10
(6)
Notes on Going Concern Assumption
11
(7)
Notes to Condensed Consolidated Financial Statements
11
1.
Additional information
11
2.
Segment information
11
3.
Earnings per share
14
4.
Impairment of assets
14
5.
Significant subsequent events
15
- 1 -
1. Overview of Operating Results and Financial Position
(1) Overview of Operating Results
During the three months ended June 30, 2020 (from April 1, 2020 to June 30, 2020), the Group made efforts to enhance corporate value over the mid to long term by ensuring healthy profitability and creating new hit titles in its Game Business, while making optimal growth investments in new business areas to realize a stronger business portfolio.
During the three months ended June 30, 2020, revenue increased year-on-year in the Game Business and the Live Streaming Business, while revenue decreased year-on-year in the Sports Business due to the impact of the spread of the novel coronavirus disease (COVID-19).
Cost of sales and selling, general and administrative expenses in total decreased year-on-year. Expenses including commission fees in cost of sales increased in line with the performance of the Game Business and the Live Streaming Business, while depreciation decreased in line with the decrease in intangible assets year-on-year. Expenses related to the Sports Business and the former Automotive Business also decreased year-on-year.
In other income, due to an absorption-type company split of businesses related to taxi dispatch apps, etc. effective April 1, 2020, the Company recorded a gain on transfer in the amount of ¥2,045 million, which is calculated as the difference between the compensation for this company split and the net assets based on the book value of the assets and liabilities of the transferred business immediately prior to the company split. In addition, following the transfer of a portion of the Company's shares in SHOWROOM Inc. during the three months ended June 30, 2020, the Company recorded a gain on sales of shares of subsidiaries of ¥7,889 million.
As a result, revenue of the DeNA Group was ¥30,041 million, down 4.3% year-on-year, operating profit was ¥12,570 million, up 442.1% year-on-year, profit before tax was ¥14,462 million, up 274.4% year-on-year, and profit for the period attributable to owners of the parent was ¥9,902 million, up 304.7% year-on-year.
Business performance by segment is as follows.
During the three months ended June 30, 2020, changes have been made to the segment classification, and comparison and analysis of business performance by segment has been done after restatement to the revised segment classification. For details, please refer to "2. Condensed Consolidated Financial Statements and Principal Notes (7) Notes to Condensed Consolidated Financial Statements 2. Segment information 1) Outline of reportable segments."
Game Business
Revenue of the Game Business was ¥21,231 million, up 7.8% year-on-year, and segment profit was ¥4,608 million, up 35.4% year-on-year.
During the three months ended June 30, 2020, both revenue and profit increased year-on-year due to steady performance of existing titles, contributions from titles that were launched in Japan and overseas in and after the previous fiscal year, and an increase in virtual currency consumption year-on-year.
Sports Business
Revenue of the Sports Business was ¥1,211 million, down 84.8% year-on-year, and segment loss was ¥2,082 million, compared with segment profit of ¥2,657 million for the same period of the previous fiscal year.
Due to the spread of COVID-19, the start of the official professional baseball games, which was late March in normal years, was delayed until June 19. During the three months ended June 30, 2020, there was impact from all games being held without spectators.
3) Live Streaming Business
Revenue of the Live Streaming Business was ¥5,742 million, up 227.8% year-on-year, and segment profit was ¥766 million, compared with segment loss of ¥312 million for the same period of the previous fiscal year.
This business includes services such as Pococha and SHOWROOM, and the Company has been proactively investing for growth of this business since the period before the previous fiscal year.
- 2 -
4) Healthcare Business
Revenue of the Healthcare Businesses was ¥446 million, up 7.5% year-on-year, and segment loss was ¥373 million, compared with segment loss of ¥454 million for the same period of the previous fiscal year.
Use of "MYCODE," "kencom," "Aruite Otoku," and other existing services provided in the healthcare service field was solid. Meanwhile, the Company made prior investments, mainly in the research and development field.
New Businesses and Others
Revenue of the New Businesses and Others was ¥1,579 million, down 1.9% year-on-year, and segment loss was ¥152 million, compared with segment loss of ¥1,519 million for same period of the previous fiscal year.
This section comprises various initiatives that aim to reinforce the Group's business portfolio over the mid to long term as well as services of the E-commerce Business. The figures for the previous fiscal year include aggressive investments in the former Automotive Business.
Overview of Financial Position and Cash Flows
Financial Position
Total assets at the end of the three months ended June 30, 2020 were ¥285,582 million, an increase of ¥29,842 million compared to the end of the previous fiscal year.
Current assets were ¥112,707 million, an increase of ¥4,615 million compared to the end of the previous fiscal year. This was due mainly to an increase in cash and cash equivalents by ¥9,497 million.
Non-current assets were ¥172,874 million, representing an increase of ¥25,227 million compared to the end of the previous fiscal year. This was due mainly to an increase in investments accounted for using the equity method by ¥13,703 million.
Total liabilities at the end of the three months ended June 30, 2020 amounted to ¥87,431 million, an increase of ¥19,010 million compared to the end of the previous fiscal year.
Current liabilities were ¥34,272 million, representing a decrease of ¥6,509 million compared to the end of the previous fiscal year. This was due mainly to a decrease in trade and other current payables by ¥8,187 million.
Non-current liabilities stood at ¥53,158 million, representing an increase of ¥25,519 million compared to the end of the previous fiscal year. This was due mainly to an increase of ¥20,000 million in borrowings.
Total equity at the end of the three months ended June 30, 2020 was ¥198,151 million, representing an increase of ¥10,832 million compared to the end of the previous fiscal year. This was primarily attributable to a decrease of ¥33,183 million in treasury stock.
In terms of liquidity, the liquidity ratio and ratio of equity attributable to owners of the parent were 328.9% and 68.1%, respectively, at the end of the three months ended June 30, 2020.
Cash Flows
Cash and cash equivalents (collectively, "cash") at the end of the three months ended June 30, 2020 increased by ¥9,497 million to ¥83,033 million compared to the end of the previous fiscal year. Cash flows in each area of activity and their respective contributing factors are as follows.
(Operating activities)
Net cash provided by operating activities for the three months ended June 30, 2020 was ¥6,349 million, compared to a cash inflow of ¥7,411 million in the same period of the previous fiscal year. The principal cash inflow factor was ¥14,462 million in profit before tax.
(Investing activities)
Net cash used in investing activities for the three months ended June 30, 2020 was ¥3,695 million, compared to a cash outflow of ¥3,962 million in the same period of the previous fiscal year. The principal cash outflow factor was ¥3,275 million in acquisition of property and equipment.
(Financing activities)
3 -
Net cash provided by financing activities for the three months ended June 30, 2020 was ¥11,259 million, compared to a cash outflow of ¥1,657 million in the same period of the previous fiscal year. The principal cash inflow factor was ¥20,000 million in proceeds from borrowings.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
The consolidated financial results forecast for the fiscal year ending March 31, 2021 cannot be provided due to the difficulty of reasonably & accurately estimating the figures. For information on the principal matters expected to have an impact on business performance for the fiscal year ending March 31, 2021 and the impact of the spread of COVID-19, please refer to "Consolidated Financial Results for the Fiscal Year Ended March 31, 2020 [IFRS]" announced on May 14, 2020.
As a result of a capital increase through a third-party allotment conducted in July 2020 by Mobility Technologies Co., Ltd., an associate of the Company accounted for using the equity method, the Company expects to record approximately ¥3.8 billion in share of profit of associates accounted for using the equity method during the six months ending September 30, 2020. Please also refer to "2. Condensed Consolidated Financial Statements and Principal Notes (7) Notes to Condensed Consolidated Financial Statements 5. Significant subsequent events."
- 4 -
2. Condensed Consolidated Financial Statements and Principal Notes
(1) Condensed Consolidated Statement of Financial Position
(Millions of yen)
As of
As of
March 31, 2020
June 30, 2020
Assets
Current assets
Cash and cash equivalents
73,536
83,033
Trade and other current receivables
25,243
22,981
Income tax receivable
686
803
Other financial assets
2,296
1,017
Other current assets
6,331
4,873
Total current assets
108,093
112,707
Non-current assets
Property and equipment
3,082
2,893
Right-of-use assets
21,378
20,827
Goodwill
5,883
5,883
Intangible assets
7,243
6,813
Investments accounted for using the
22,378
36,081
equity method
Other non-current financial assets
86,832
99,557
Deferred tax assets
550
563
Other non-current assets
301
258
Total non-current assets
147,647
172,874
Total assets
255,740
285,582
- 5 -
(Millions of yen)
As of
As of
March 31, 2020
June 30, 2020
Liabilities and equity
Liabilities
Current liabilities
Trade and other current payables
25,348
17,161
Borrowings
3,000
-
Lease liabilities
2,708
2,881
Income tax payables
398
930
Other current financial liabilities
563
982
Other current liabilities
8,764
12,319
Total current liabilities
40,781
34,272
Non-current liabilities
Borrowings
-
20,000
Lease liabilities
7,129
6,417
Provisions
980
930
Other non-current financial liabilities
954
297
Deferred tax liabilities
18,384
25,311
Other non-current liabilities
194
202
Total non-current liabilities
27,640
53,158
Total liabilities
68,421
87,431
Equity
Common stock
10,397
10,397
Capital surplus
15,237
15,817
Retained earnings
163,564
135,527
Treasury stock
(45,139)
(11,956)
Other components of equity
36,428
44,567
Total equity attributable to owners of
180,486
194,353
the parent
Non-controlling interests
6,833
3,797
Total equity
187,319
198,151
Total liabilities and equity
255,740
285,582
- 6 -
(2) Condensed Consolidated Income Statement
(Millions of yen)
Three months ended
Three months ended
June 30, 2019
June 30, 2020
Revenue
31,383
30,041
Cost of sales
(13,640)
(13,699)
Gross profit
17,743
16,342
Selling, general and administrative expenses
(14,303)
(13,765)
Other income
134
10,087
Other expenses
(1,254)
(93)
Operating profit
2,319
12,570
Finance income
1,177
2,669
Finance costs
(649)
(70)
Share of profit (loss) of associates accounted for using
1,016
(708)
the equity method
Profit before tax
3,863
14,462
Income tax expense
(1,303)
(4,595)
Profit for the period
2,560
9,867
Attributable to:
Owners of the parent
2,447
9,902
Non-controlling interests
113
(35)
Profit (loss) for the period
2,560
9,867
(Yen)
Earnings per share attributable to owners of the parent:
Basic earnings per share
16.83
79.86
Diluted earnings per share
16.81
79.75
- 7 -
(3) Condensed Consolidated Statement of Comprehensive Income
(Millions of yen)
Three months ended
Three months ended
June 30, 2019
June 30, 2020
Profit for the period
2,560
9,867
Other comprehensive income
Components of other comprehensive income that will
not be reclassified to profit or loss, net of tax
Gains (losses) from investments in equity
9,329
8,431
instruments, net of tax
Total other comprehensive income that will not be
9,329
8,431
reclassified to profit or loss, net of tax Components of other comprehensive income that may be reclassified to profit or loss, net of tax
Foreign currency translation adjustments, net of tax
Other
Total other comprehensive income that may be reclassified to profit or loss, net of tax
Other comprehensive income, net of tax
Total comprehensive income for the period
179
18
(2)
1
177
19
9,507
8,450
12,067
18,317
Attributable to:
Owners of the parent
11,995
18,281
Non-controlling interests
72
36
Total comprehensive income for the period
12,067
18,317
- 8 -
(4) Condensed Consolidated Statement of Changes in Equity
(Millions of yen)
Equity attributable to owners of the parent
Non-
Common
Capital
Retained
Treasury
Other
components
Total
controlling
Total equity
stock
surplus
earnings
stock
of equity
interests
As of April 1, 2019
10,397
10,971
217,973
(11,498)
23,894
251,737
5,129
256,865
Cumulative effect of accounting
-
-
(43)
-
-
(43)
-
(43)
change
Restated balance
10,397
10,971
217,930
(11,498)
23,894
251,694
5,129
256,822
Profit for the period
-
-
2,447
-
-
2,447
113
2,560
Other comprehensive income
-
-
-
-
9,548
9,548
(41)
9,507
Total comprehensive income for the
-
-
2,447
-
9,548
11,995
72
12,067
period
Dividends recognized as distributions
-
-
(5,814)
-
-
(5,814)
(520)
(6,334)
to owners
Increase (decrease) through treasury
-
(223)
-
186
-
(37)
-
(37)
stock transactions
Increase (decrease) through share-
-
14
-
-
32
46
-
46
based payment transactions
Transfer to capital surplus from
-
42
(42)
-
-
-
-
-
retained earnings
Acquisition, disposal and other changes
-
2,452
-
-
-
2,452
2,546
4,998
of non-controlling interests
Increase (decrease) through transfers
-
36
41
-
(40)
38
316
354
and other changes
As of June 30, 2019
10,397
13,293
214,562
(11,312)
33,434
260,373
7,543
267,916
(Millions of yen)
Equity attributable to owners of the parent
Non-
Common
Capital
Retained
Treasury
Other
components
Total
controlling
Total equity
stock
surplus
earnings
stock
of equity
interests
As of April 1, 2020
10,397
15,237
163,564
(45,139)
36,428
180,486
6,833
187,319
Profit for the period
-
-
9,902
-
-
9,902
(12)
9,867
Other comprehensive income
-
-
-
-
8,379
8,379
71
8,450
Total comprehensive income for the
-
-
9,902
-
8,379
18,281
36
18,317
period
Dividends recognized as
-
-
(2,510)
-
-
(2,510)
(566)
(3,076)
distributions to owners
Increase (decrease) through treasury
-
(18)
-
(2,433)
-
(2,450)
-
(2,450)
stock transactions
Cancellation of treasury stock
-
(35,616)
-
35,616
-
-
-
-
Increase (decrease) through share-
-
10
-
-
6
16
-
16
based payment transactions
Transfer to capital surplus from
-
35,622
(35,622)
-
-
-
-
-
retained earnings
Acquisition, disposal and other
-
167
-
-
-
167
233
400
changes of non-controlling interests
Change resulting from loss of
-
-
-
-
(52)
(52)
(2,925)
(2,977)
control of subsidiaries
Increase (decrease) through transfers
-
416
193
-
(193)
416
186
603
and other changes
As of June 30, 2020
10,397
15,817
135,527
(11,956)
44,567
194,353
3,797
198,151
- 9 -
(5) Condensed Consolidated Statement of Cash Flows
(Millions of yen)
Three months ended
Three months ended
June 30, 2019
June 30, 2020
Operating activities
Profit before tax
3,863
14,462
Depreciation and amortization
3,309
1,333
Profit for transfer from business divestitures
-
(2,045)
Gain on sales of shares of subsidiaries and associates
-
(7,889)
Impairment loss
1,183
-
Interest and dividend income
(1,177)
(1,464)
Interest expenses
8
16
Share of loss of associates accounted for using the equity method
(1,016)
708
Decrease (increase) in trade and other current receivables
4,631
906
Increase (decrease) in trade and other current payables
(2,292)
(3,370)
Increase (decrease) in deposits received
762
459
Increase (decrease) in advances received
(3,117)
4,367
Other, net
679
(2,252)
Subtotal
6,832
5,231
Dividends received
1,142
1,444
Interest paid
(1)
(12)
Interest received
42
20
Income tax paid
(604)
(344)
Income tax refund
-
10
Cash flows from (used in) operating activities
7,411
6,349
Investing activities
Proceeds from sales of subsidiaries or other businesses, net of
86
45
cash disposed of
Sales of subsidiaries or other businesses, net of
-
(191)
cash acquired
Purchase of shares of associates
(1,750)
(200)
Proceeds from sales and redemption of investment securities
1,805
1,690
Purchases of investment securities
-
(198)
Acquisition of property and equipment
(241)
(3,275)
Acquisition of intangible assets
(3,772)
(1,594)
Other, net
(90)
29
Cash flows from (used in) investing activities
(3,962)
(3,695)
Financing activities
Proceeds from borrowings
-
20,000
Repayments of borrowings
-
(3,000)
Repayments of lease liabilities
(531)
(708)
Cash dividends paid
(5,646)
(2,425)
Proceeds from share issuance to non-controlling interests
4,998
400
Cash dividends paid to non-controlling shareholders
(520)
(566)
Proceeds from disposition of treasury stock
41
3
Purchase of treasury stock
-
(2,445)
Net cash flows from (used in) financing activities
(1,657)
11,259
Net increase in cash and cash equivalents
1,792
13,913
Cash and cash equivalents at beginning of period
101,386
73,536
Effect of exchange rate changes on cash and cash equivalents
(52)
(42)
Decrease in cash and cash equivalents resulting from exclusion of
-
(4,374)
subsidiaries from consolidation
Cash and cash equivalents at end of period
103,126
83,033
- 10 -
Notes on Going Concern Assumption Not applicable.
Notes to Condensed Consolidated Financial Statements
Additional information (Important accounting estimates)
There are no major changes to the assumptions related to the impact of the spread of COVID-19 on the professional baseball business stated in (Additional information) in the Securities Report from the fiscal year ended March 31, 2020.
Segment information
Outline of reportable segments
The Group principally provides Internet services for mobile and PC users and organizes business divisions by type of service. Each of these business divisions formulates comprehensive business strategies for the services it provides, and undertakes related business activities.
Therefore, the Group is composed of operating segments classified by the types of services provided. The four reportable segments of the Group are classified as the "Game Business," "Sports Business," "Live Streaming Business" and "Healthcare Business."
The types of services provided by each segment classification are shown in the table below:
Segment classification
Type of service
Game Business
Game for mobile devices-related services (provided in Japan
and internationally)
Principal services: Mobage, etc.
Sports Business
Sports-related services (provided in Japan)
Principal services: Yokohama DeNA BayStars Baseball Club,
operation of the Yokohama Stadium, Kawasaki Brave Thunders,
Yokohama DeNA Running Club, etc.
Live Streaming Business
Live streaming-related services (provided in Japan)
Principal services: Pococha, SHOWROOM, etc.
Healthcare Business
Healthcare-related services (provided in Japan)
Principal services: MYCODE, kencom, Aruite Otoku, etc.
New Businesses and
New businesses and other services (provided in Japan and
Others
internationally)
Principal business domains: IP-generating platform business, E-
commerce business, other new businesses, etc.
The "Live Streaming Business," which had been included in "New Businesses and Others" until the fiscal year ended March 31, 2020, has been reclassified under a reportable segment due to the expansion in its business scale and increased importance to management. Moreover, until the fiscal year ended March 31, 2020, reportable segments consisted of the four segments of the "Game Business," "Sports Business," "Automotive Business" and "Healthcare Business." However, from the three months ended June 30, 2020, the reportable segments have been reclassified into the four segments of the "Game Business," "Sports Business," "Live Streaming Business" and "Healthcare Business" following a review of segment management classification in response to changes in the Group structure.
Segment information for the three months ended June 30, 2019 has been restated in accordance with the new segmentation.
2) Revenue, profit or loss, and other items by reportable segment
Accounting policies for reportable segments are identical to those of the Group in the consolidated financial statements for the fiscal year ended March 31, 2020.
- 11 -
Intersegment revenue is calculated based on external market prices.
Revenue, profit or loss, and other items of the Group's reportable segments are as follows:
For the three months ended June 30, 2019(From April 1, 2019 to June 30, 2019)
(Millions of yen)
Live
New
Game
Sports
Healthcare
Businesses
Adjustments
Streaming
Total
Business
Business
Business
and
*3
Business
Others *2
Revenue
Revenue from external
19,692
7,923
1,751
415
1,602
―
31,383
customers
Intersegment revenue
2
28
―
―
8
(39)
―
Total
19,695
7,951
1,751
415
1,610
(39)
31,383
Segment profit (loss)*1
3,404
2,657
(312)
(454)
(1,519)
(336)
3,440
Other income (expenses), net
Operating profit
Finance income (costs), net
Share of profit (loss) of associates accounted for using the equity method
(1,121)
2,319
528
1,016
Profit before tax
3,863
(Notes) 1 Segment profit (loss) is calculated by deducting cost of sales and selling, general and administrative expenses from revenue.
2 "New Businesses and Others" refer to operating segments that do not fall into any of the reportable
segments, including IP-generating platform business, E-commerce business, Automotive business, and other new businesses.
3 Adjustments in segment profit (loss) represent corporate expenses, which primarily include general and administrative expenses not attributable to any of the reportable segments.
- 12 -
For the three months ended June 30, 2020(From April 1, 2020 to June 30, 2020)
(Millions of yen)
Live
New
Game
Sports
Healthcare
Businesses
Adjustments
Streaming
Total
Business
Business
Business
and
*3
Business
Others *2
Revenue
Revenue from external
21,227
1,185
5,742
446
1,441
―
30,041
customers
Intersegment revenue
4
25
―
―
138
(168)
―
Total
21,231
1,211
5,742
446
1,579
(168)
30,041
Segment profit (loss)*1
4,608
(2,082)
766
(373)
(152)
(192)
2,576
Other income (expenses), net
Operating profit
Finance income (costs), net
Share of profit (loss) of associates accounted for using the equity method
9,994
12,570
2,599
(708)
Profit before tax
14,462
(Notes) 1 Segment profit (loss) is calculated by deducting cost of sales and selling, general and administrative expenses from revenue.
2 "New Businesses and Others" refer to operating segments that do not fall into any of the reportable segments, including IP-generating platform business, E-commerce business, and other new
businesses.
3 Adjustments in segment profit (loss) represent corporate expenses, which primarily include general and administrative expenses not attributable to any of the reportable segments.
- 13 -
3. Earnings per share
The basis for calculating earnings per share attributable to owners of the parent for the three months ended June 30, 2019 and 2020 are as follows:
Three months ended
Three months ended
June 30, 2019
June 30, 2020
(From April 1, 2019 to
(From April 1, 2020 to
June 30, 2019)
June 30, 2020)
Profit for the period attributable to owners of the
2,447
9,902
parent (Millions of yen)
Weighted average number of common shares
145,377,635
123,993,459
outstanding during the period-basic (Shares)
Effect of dilutive potential common shares:
Stock options, etc. (Shares)
161,149
161,113
Weighted average number of common shares
145,538,784
124,154,572
outstanding during the period-diluted (Shares)
Earnings per share attributable to owners of the
parent (Yen)
Basic earnings per share
16.83
79.86
Diluted earnings per share
16.81
79.75
4. Impairment of assets
The Group recognized impairment losses, which are recorded under "other expenses" in the condensed consolidated income statement.
The breakdown of the impairment losses is as follows:
(Millions of yen)
Three months ended
Three months ended
June 30, 2019
June 30, 2020
(From April 1, 2019 to
(From April 1, 2020 to
June 30, 2019)
June 30, 2020)
Intangible assets
Software
(1,183)
―
Total
(1,183)
―
The Group organizes its assets into the smallest group of assets that generates identifiable independent cash flows. Future cash flow is estimated on the basis of past results and management evaluation of future forecasts, using external and internal information.
For the three months ended June 30, 2019(From April 1, 2019 to June 30, 2019)
In certain services in the Game Business, an impairment loss of ¥1,183 million was recorded for software associated with said services as initially projected revenues can no longer be expected. The recoverable amount was calculated based on its value in use, and as future cash flow was expected to be negative, this value was viewed as zero.
- 14 -
5. Significant subsequent events
(Capital increase through a third-party allotment by an associate accounted for using the equity method) Mobility Technologies Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; Representative Director & President:
Hiroshi Nakajima), an associate of the Company accounted for using the equity method entered into a capital and business alliance with NTT DOCOMO, INC. (Headquarters: Chiyoda-ku, Tokyo; President and Chief Executive Officer, Representative Member of the Board of Directors: Kazuhiro Yoshizawa) and Tokyo Century Corporation (Headquarters: Chiyoda-ku, Tokyo; President & CEO: Makoto Nogami), and Dentsu Group (Dentsu Group Inc. (Headquarters: Minato-ku, Tokyo; Representative Director, President & CEO: Toshihiro Yamamoto) and DENTSU INC. (Headquarters: Minato-ku, Tokyo; Representative Director, President & CEO: Hiroshi Igarashi)) on July 13, 2020, and conducted a capital increase through a third-party allotment. As a result, the Company shareholdings of Mobility Technologies changed, and the Company expects to record approximately ¥3,800 million in share of profit of associates accounted for using the equity method in the condensed consolidated income statement for the six months ending September 30, 2020.
DeNA Co. Ltd. published this content on 05 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2020 06:06:14 UTC
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