MESSAGE FROM
THE PRESIDENT

For the fiscal year ending March 31, 2025, we achieved growth in both sales and income, with consolidated net sales of 154.8 billion yen (up 5.4% year-on-year), EBITDA (operating income before amortization and depreciation) of 31.6 billion yen (up 34.9% YoY), operating income of 26.6 billion yen (up 38.7%), and profit attributable to shareholders of the parent company of 17.6 billion yen (up 148.5%).

For fiscal year 2026, net sales were 171.3 billion yen (up 10.7% YoY), EBITDA (operating income before amortization) was 31.1 billion yen (down 1.6% YoY), operating income was 22.2 billion yen (down 16.3% YoY), and profit attributable to owners of parent was 17.2 billion yen (down 1.9% YoY). While net sales increased, EBITDA declined due to lower revenue from MONSTER STRIKE and the absence of the gain on sales from our investment business from the previous fiscal year. In addition, operating income decreased due to the recognition of goodwill amortization and other items related to the consolidation of PointsBet, while profit attributable to owners of parent remained flat YoY due to foreign exchange gains and other factors.

The Sports segment saw net sales increase by 63.8% to 65.8 billion yen, and EBITDA exceeded 5 billion yen. This segment has grown to become our second pillar of business, behind the Digital Entertainment segment. Net sales for spectator sports have increased for both the CHIBAJETS and FC TOKYO. The net sales of our betting businesses increased thanks to the consolidation of Australia’s PointsBet Holdings Limited as a subsidiary, as well as growth in our social sports betting service TIPSTAR and Chariloto in betting ticket sales and fees received for comprehensive management contracts for keirin stadiums.

In the Lifestyle segment, net sales increased by 16.0% to 17.1 billion yen, driven by strong performance in FamilyAlbum focus areas (FamilyAlbum Premium, photo prints, FamilyAlbum GPS Guardian, and advertising), and the segment achieved full-year positive EBITDA. FamilyAlbum now has around 30 million users, with an MAU of 12 million as of May 2026, indicating that the service is steadily expanding.

Net sales in the Digital Entertainment segment decreased by 10.8% to 83.8 billion yen. Although the ARPU increased for MONSTER STRIKE, MAU declined due to challenges in retaining new users. At the same time, EBITDA remained flat YoY, as profit margins improved due to increased cost efficiency resulting from a rise in transactions processed through our proprietary payment method, the MONSTER STRIKE Web Shop.

Although the Investment segment received dividends from its portfolio funds, both sales and earnings declined YoY due to the gains on the sale of shares from a large transaction made during the previous fiscal year.

Furthermore, AI has become firmly established as part of the operational infrastructure that all employees use on a daily basis. For FY2026, the company-wide AI usage rate exceeded 99%, resulting in a reduction of approximately 17,600 hours in monthly work hours and annual cost savings of approximately 1 billion yen. This led to various productivity improvements in key operations across all departments. We will continue to improve operational efficiency through the use of AI and leverage the resulting resources to develop new services and enhance existing ones.

We have defined the economic ecosystem that emerges from interactions with family and friends, such as on social media, in games, and in sports, as the “We-Time Economy,” and have formulated a medium-term vision based on this concept.

As advances in AI and digital technologies increase people’s free time and expand the range of available content, the value lies not only in what people choose to enjoy, but increasingly in who they enjoy it with. This is a type of value that MIXI has long emphasized. Capitalizing on this favorable trend in the leisure market as a whole, we will accelerate the creation of value in a way that is unique to MIXI.

In our business strategy, we will leverage our expertise in generating low-cost user acquisition through word-of-mouth, improving retention by enabling people to enjoy experiences with family and friends, and driving engagement and spending through shared excitement and participation, thereby building highly profitable businesses.

In the Sports segment, we will combine the social betting expertise cultivated through TIPSTAR with PointsBet’s technology to bring this We-Time experience of enjoying entertainment together with friends and peers to overseas markets as well.

In the Lifestyle segment, we will increase the proportion of sales of high-margin digital offerings, such as subscriptions and advertising for FamilyAlbum, while also pursuing user growth globally and developing monetization strategies tailored to local markets.

In the Digital Entertainment segment, we will further enhance the value of the MONSTER STRIKE IP to strengthen our business foundation over the medium to long term. At the same time, we will continue to cultivate new markets through projects like STRIKE WORLD, the global version of MONSTER STRIKE, which began full-scale operations in India in April 2026.

Under our financial strategy, we will prioritize improving efficiency metrics (EBITDA margin and ROE), aiming to achieve net sales of ¥300 billion, an EBITDA margin of 20%, and an ROE of 15% by the early 2030s. By actively investing in our businesses and pursuing M&A opportunities, we aim to drive profit growth and provide greater returns to our shareholders. For governance, we will reinforce the disciplines that serve as the foundation for sustainable corporate management, particularly through improvements to director evaluation processes and compensation systems.

For more on our “Medium-Term Vision Growth Strategy in the We-Time Economy”, please refer to the FY2026 Q4 Financial Results Briefing Materials linked below.

https://mixi.co.jp/en/ir/docs/earnings/

The annual dividend per share for FY2026 was set at 120 yen. In addition, we expect to increase the dividend to 125 yen for FY2027. Starting in the fiscal year ending March 2027, we will increase our targeted consolidated dividend payout ratio from 20% to 40%, reflecting our transition into a period of sustained earnings growth. While maintaining our policy of targeting a DOE of 5%, we have adopted a shareholder return policy that allows profit growth to be reflected in shareholder returns more directly than before. We will continue to strive to enhance our corporate value while ensuring appropriate returns to our shareholders.

MIXI is currently in a phase we are calling our “Third Founding”. Our first founding phase was marked by the launch of the social networking service mixi, while our second founding phase was driven by the success of MONSTER STRIKE. In our Third Founding phase, we aim to significantly expand both sales and earnings by monetizing and accelerating the global expansion of the Sports and Lifestyle businesses we have built using the cash flow generated by MONSTER STRIKE.

On behalf of everyone at MIXI, Inc., I’d like to thank you for your continued support.