MESSAGE FROM
THE PRESIDENT

Business Status in Fiscal Year 2024

For fiscal year 2024, net sales were 146.8 billion yen (around the same YoY), EBITDA (operating income before amortization) was 23.4 billion yen (down 20.3% YoY), operating income was 19.1 billion yen (down 22.7% YoY), and profit attributable to owners of parent was 7 billion yen (up 37.2% YoY).

The Sports segment saw its net sales increase to 32.9 billion yen. In our spectator sports businesses, CHIBAJETS achieved a double crown by winning the Emperor’s Cup and the East Asian Super League (EASL), and ticket sales and merchandise revenue increased. In our publicly-managed betting sports businesses, there was a steady rise in online betting ticket sales for Chariloto Co., Ltd. and our multiplayer sports betting service TIPSTAR, and growth in our keirin stadium management business.

The Lifestyle segment saw its net sales increase to 13.4 billion yen thanks to growth in FamilyAlbum. Performance was favorable for services such as FamilyAlbum Premium and GPS Guardian.

The Digital Entertainment segment’s net sales decreased to 98.8 billion yen. MONSTER STRIKE’s ARPU (average revenue per user) decreased, but due to the success of measures taken for the 10th anniversary of MONSTER STRIKE and collaborations with major IPs, we were able to maintain high MAU (monthly active users) exceeding the previous fiscal year.

Initiatives for Business Growth and Enhancement of Corporate Value

In order to achieve growth in corporate value over the medium and long term, we follow these three measures: “maximize revenue through business growth”, “business expansion through M&A”, and “optimize shareholders’ equity”.

For our first measure, “maximize revenue through business growth”, we will work toward developing global markets for each of our business segments.

In the Sports segment, we are developing betM, the first social betting service by a Japanese company to compete in the large and continuously growing Australian betting market. We will utilize the expertise we have accumulated through TIPSTAR to innovate in the Australian betting market.

The Lifestyle segment is experiencing steady growth in user numbers. Of its 20 million total users, about 40% are from overseas, with about half of that number from North America. We will continue to acquire overseas users while strengthening the monetization of FamilyAlbum Premium and other major products.

In the Digital Entertainment segment, we will bring MONSTER STRIKE to emerging markets in countries experiencing rapid economic growth, starting with India’s mobile game market, aiming to take the top spot in the market.

For the second measure, “business expansion through M&A,” we will make effective use of our cash reserves to aggressively execute M&A to create synergies that accelerate core business development and the growth of existing businesses.

The third measure is “optimize shareholders’ equity”. Increasing profit scales and share prices are the primary ways to return profits to shareholders. To achieve this, we will establish a capital allocation policy and a business portfolio management policy based on it, and conduct business investments and M&A to maximize profit scales. In addition, we will optimize shareholders’ equity to increase corporate value in the medium and long term by means such as flexibly repurchasing treasury shares to reach a total payout ratio of 100% until we achieve stable dividends and ROE levels that exceed the cost of shareholders’ equity. For FY2025, we expect net sales of 147 billion yen, EBITDA of 23 billion yen, operating income of 18.5 billion yen, and profit attributable to owners of the parent of 12 billion yen.

 

For more on our Initiatives for Business Growth and Enhancement of Corporate Value, please refer to the FY2024 Q4 Financial Results Briefing Materials linked below.

https://pdf.irpocket.com/C2121/RLCz/IdNK/l7zk.pdf

To Our Shareholders

Our policy is to focus on investment for business growth while continuing to provide stable shareholder returns. For FY2024, the Company paid a year-end dividend of ¥55 per share, which means an annual dividend of ¥110 per share when including the interim dividend. For FY2025, we plan to pay an annual dividend of ¥110 based on a dividend on equity ratio (DOE) of 5%.

The Group will expand its business revenue through globalization and innovation in order to realize our Purpose of enriching communication and inspiring moments of joy. Through the process of reinvesting the profits earned from this into business growth and M&A, we will further increase corporate value. On behalf of everyone at MIXI, Inc., I’d like to thank you for your continued support.

President, Representative Director, Senior Corporate Officer, CEO Koki Kimura