Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Tokyo Stock Exchange  >  DeNA Co., Ltd.    2432   JP3548610009

DENA CO., LTD.

(2432)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector news

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.

Consolidated Financial Results

for the Three Months Ended June 30, 2020

[IFRS]

August 5, 2020

Company name: DeNA Co., Ltd.

Stock exchange listing: Tokyo Stock Exchange

Code number: 2432

URL: https://dena.com/intl/

Representative: Isao Moriyasu, President & CEO

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

  1. Changes in Significant Subsidiaries during the Period under Review (changes in specified subsidiaries accompanying changes in scope of consolidation): No
  2. Changes in Accounting Policies and Changes in Accounting Estimates
    1. Changes in accounting policies required by IFRS: No
    2. Changes in accounting policies other than 1) above: No
    3. Changes in accounting estimates: No
  3. Number of Shares Issued (common stock)
    1. 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."

  1. 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.
  2. 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.

    1. 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.
  1. Overview of Financial Position and Cash Flows
    1. 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.
    2. 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 -

  1. Notes on Going Concern Assumption Not applicable.
  2. Notes to Condensed Consolidated Financial Statements
  1. 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.
  2. Segment information
  1. 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.

- 15 -

Disclaimer

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


© Publicnow 2020
All news about DENA CO., LTD.
2020Chugai and DeNA Jointly Launch 'Ring Again,' a Rheumatoid Arthritis Disease A..
AQ
2020Nikkei ends at fresh 29-year peak as vaccine hopes continue to rise
RE
2020Japan shares climb over 29-year peak as vaccine hopes continue to cheer
RE
2020DENA CO., LTD. : Half-year results
CO
2020DENA : Notice Regarding Capital & Business Alliance with DATA HORIZON CO., LTD.
PU
2020DENA : Consolidated Financial Results for the Three Months Ended June 30, 2020
PU
2020DENA CO., LTD. : Press Release
CO
2020DENA CO., LTD. : 1st quarter results
CO
2020EISAI : AND DeNA TO PROVIDE SMARTPHONE APP 'EASIIT APP' THROUGH BUSINESS ALLIANC..
AQ
2020DENA CO., LTD. : Proxy Statments
CO
More news
Financials
Sales 2021 134 B 1 291 M 1 291 M
Net income 2021 20 051 M 193 M 193 M
Net cash 2021 87 885 M 845 M 845 M
P/E ratio 2021 12,0x
Yield 2021 1,24%
Capitalization 234 B 2 258 M 2 251 M
EV / Sales 2021 1,09x
EV / Sales 2022 0,96x
Nbr of Employees 2 558
Free-Float 65,0%
Chart DENA CO., LTD.
Duration : Period :
DeNA Co., Ltd. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends DENA CO., LTD.
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 11
Average target price 2 067,00 JPY
Last Close Price 1 896,00 JPY
Spread / Highest target 34,5%
Spread / Average Target 9,02%
Spread / Lowest Target -15,6%
EPS Revisions
Managers and Directors
NameTitle
Isao Moriyasu President, CEO & Representative Director
Tomoko Namba Chairman
Shingo Okamura COO, Director & General Manager-Sports
Jun Oi CFO & Managing Executive Officer
Atsushi Kobayashi CTO, Managing Executive Officer & GM-Systems
Sector and Competitors
1st jan.Capitalization (M$)
DENA CO., LTD.3.10%2 258
SNAP INC.0.48%74 961
GRUBHUB INC.-4.32%6 591
ANGI HOMESERVICES INC.-9.21%5 988
MOMO INC.5.09%3 050
TEN SQUARE GAMES S.A.-7.62%970