DeNA Co., Ltd. (TSE: 2432), the Shibuya-based mobile gaming, live-streaming and sports group, reported FY3/2026 consolidated IFRS results showing a marked retreat from the launch-driven highs of the prior year. Revenue fell 9.9% year-on-year to ¥147,700 million, operating profit dropped 35.5% to ¥18,694 million, and profit before tax declined 19.0% to ¥25,764 million. Profit attributable to owners of the parent slipped 21.3% to ¥19,048 million, with basic earnings per share at ¥171.36 (vs. ¥217.24). The operating margin compressed to 12.7% from 17.7%, while return on equity attributable to owners softened to 8.0% from 10.7%. Total comprehensive income contracted 65.1% to ¥12,043 million, weighed down by adverse fair-value movements on equity investments.
The headline declines mask a structural shift in DeNA's earnings base. The standout positive was a 281.7% surge in equity-method profit to ¥8,814 million, driven by improved results at major associates including Cygames Inc. and GO Inc. — the latter an IPO applicant whose forthcoming listing the company cited as the principal reason for withholding FY3/2027 net-profit guidance.
Game: Pokémon TCG Pocket normalizes
The Game segment posted revenue of ¥64,356 million (-17.6%) and segment profit of ¥29,656 million (-23.1%), as "Pokémon Trading Card Game Pocket" — launched on October 30, 2024 — moved past its strong initial momentum. The contribution remained meaningful but no longer carries the front-loaded post-launch lift that defined FY3/2025 comparables, a dynamic management explicitly flagged when setting FY3/2027 guidance.
Live Streaming: Pococha pivots to profit
The Live Streaming segment generated revenue of ¥39,790 million (-1.9%) but swung from a ¥201 million prior-year loss to a segment profit of ¥3,984 million, the cleanest operational improvement of the year. Management attributed the swing to a strategic pivot at flagship app Pococha toward profitability following a TVCM-led marketing push in H1 FY3/2025, complemented by steady performance at sister app IRIAM.
Sports & Smart City: BayStars set attendance record
The reorganized Sports & Smart City segment — integrating the former Smart City operations with Sports this fiscal year — grew revenue 4.5% to ¥32,751 million with segment profit of ¥1,795 million (-2.8%). The Yokohama DeNA BayStars baseball club achieved a record home-game attendance, although the segment also carried upfront costs ahead of the March 2026 grand opening of two directly operated facilities at "BASEGATE Yokohama Kannai."
Healthcare and AI drag, Allm goodwill written down
The Healthcare & Medical segment recorded revenue of ¥8,725 million (-19.0%) and narrowed its segment loss to ¥2,329 million from ¥3,619 million. New Businesses & Other — which houses AI-related initiatives — posted revenue of ¥2,493 million (-30.4%) and a ¥1,550 million loss. The most material special item was a ¥9,912 million impairment recorded in other expenses (vs. ¥4,389 million prior year), of which ¥9,614 million was goodwill at Allm Inc. in Healthcare & Medical. The impairment test used value-in-use with a pre-tax discount rate of 24.1% after a downward revision to medical-DX growth forecasts. Goodwill on the balance sheet fell to ¥20,747 million at year-end from ¥30,361 million.
Balance sheet: leaner, more equity-funded
Total assets decreased ¥60,944 million to ¥333,244 million, primarily reflecting a ¥61,703 million decline in other long-term financial assets. Total liabilities fell ¥48,856 million to ¥92,456 million, mainly from a ¥28,604 million reduction in current borrowings and a ¥19,683 million decrease in deferred tax liabilities. Total equity slipped ¥12,088 million to ¥240,787 million, but the equity-to-asset ratio attributable to owners rose to 69.8% from 61.3%. Operating cash flow totaled ¥33,431 million; investing activities generated a ¥34,820 million inflow (versus a ¥12,280 million outflow prior year), supported by ¥50,909 million of proceeds from the sale and redemption of securities; financing activities used ¥58,079 million, including ¥28,780 million of long-term debt repayment, ¥10,694 million of treasury share buybacks, and ¥7,245 million of dividend payments. Cash and equivalents climbed to ¥103,046 million.
Dividend and FY3/2027 guidance
DeNA set the FY3/2026 dividend at ¥66.00 per share (full-year, year-end only), a slight increase from ¥65.00, equating to a consolidated payout ratio of 38.5% and a DOE of 3.1% — consistent with the company's policy of targeting roughly 3% DOE. For FY3/2027, management guides revenue of ¥154,000 million (+4.3%), IFRS operating profit of ¥15,000 million (-19.8%), and Non-GAAP operating profit of ¥15,000 million (-46.7%), reflecting the absence of the front-loaded Pokémon TCG Pocket contribution and an active investment posture during what the company describes as a "transformation phase." Profit attributable to owners is not disclosed, citing uncertainty around the IPO of equity-method affiliate GO Inc.; the FY3/2027 dividend forecast is similarly withheld. No material subsequent events were reported.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 147,700 | 163,997 | −9.9% |
| Operating profit (¥ million) | 18,694 | 28,990 | −35.5% |
| Profit before tax (¥ million) | 25,764 | 31,808 | −19.0% |
| Profit attributable to owners (¥ million) | 19,048 | 24,193 | −21.3% |
| Basic EPS (¥) | 171.36 | 217.24 | −21.1% |
| Operating margin | 12.7% | 17.7% | −5.0pp |
| ROE (owners) | 8.0% | 10.7% | −2.7pp |
| Equity ratio (owners) | 69.8% | 61.3% | +8.5pp |
| Equity-method profit (¥ million) | 8,814 | 2,309 | +281.7% |
| Annual dividend (¥) | 66.00 | 65.00 | +1.5% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.