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%).

The Sports segment saw its net sales increase to 40.2 billion yen, an increase of 22.1%. In our spectator sports businesses, sales of FC Tokyo merchandise grew, and ticket sales for the CHIBAJETS, whose capacity doubled with the opening of LaLa arena TOKYO- BAY, were also strong. In our betting businesses, online ticket sales increased at TIPSTAR, a co-operative sports betting service, and Chariloto Co., Ltd. MAUs for “TIPSTAR” are steadily increasing, and sales in the fourth quarter were 54.2% of the same period of the previous year, accelerating growth.

The Lifestyle segment performed well with sales of ¥14.7 billion, up 10.3% due to strong sales of flagship products (FamilyAlbum Premium, Photo prints, FamilyAlbum GPS Guardian), and despite FamilyAlbum’s New Year’s card service struggling from market shrinkage.

The Digital Entertainment segment reported a 4.8% decline in sales to 94.0 billion yen. ARPU of Monster Strike increased due to (among other factors) sales of new characters at the beginning of the year. However, MAU decreased relatively due to the implementation of the 10th anniversary program in the previous year. Meanwhile, EBITDA remains high, showing the results of our business restructuring and efficiency improvements.

The Group is pursuing initiatives to enhance corporate value based on the three pillars of “maximizing earnings through business growth,” “expanding business through M&A,” and “optimizing shareholders’ equity.

In “maximizing earnings through business growth,” in each segment, we are working to create new services that are both profitable and unique by combining our accumulated expertise in communication services and AI.

In the sports segment, which aims to realize social betting in Japan, Australia, and other global markets, we provide AI-based recommendations on ticket betting styles and race result predictions. We will continue to promote AI implementation at the application layer to provide more enjoyable experiences.

In the Lifestyle segment, where FamilyAlbum continues to grow toward global business success, AI is already being utilized in services such as 1s Movies and stickers that utilize photos and videos uploaded by users in the past, and these services are already receiving favorable reviews. We will continue to strive for efficient service operation.

In the Digital Entertainment segment, we are working on the early release of Monster Strike in the Indian market and its IP. Kanekichi, who joined the company as an executive officer in April, will strive to create new entertainment through the use of AI, taking advantage of his track record of achieving numerous innovations in the game domain.

We will continue to aggressively develop “business expansion through M&A,” aiming to create synergies with existing businesses. In light of our subsidiary’s fraud case discovered in October 2024, we will focus on building a solid PMI and governance structure, and then spreading that culture throughout the group.

With respect to the “optimization of shareholders’ equity,” our basic policy is to return capital to shareholders at a total return ratio of 100% until the ROE exceeds the cost of shareholders’ equity. ROE for the year ending March 31, 2025 was 10%, achieving a level that exceeds the cost of shareholders’ equity. On the other hand, from the perspective of the business environment, business conditions, and the adequacy of shareholders’ equity, we have stated in our policy as a new goal that “the three-year average ROE should exceed the cost of shareholders’ equity.” We will continue our efforts to improve capital efficiency.

For more on our Initiatives for Business Growth and Enhancement of Corporate Value, please refer to the FY2025 Q4 Financial Results Briefing Materials linked below.

https://pdf.irpocket.com/C2121/hZTq/lipd/GE3A.pdf

The annual dividend per share for the fiscal year ending March 31, 2025 was increased to 120 yen. For the fiscal year ending March 31, 2026, we plan to pay an annual dividend of 120 yen. In addition, the Company resolved to repurchase 9.5 billion yen of its own shares. These are based on a return policy aimed at optimizing shareholders’ equity, and the total return ratio for the fiscal year ending March 31, 2025, including dividends for the fiscal year ending March 31, 2025 and the 9.5 billion yen share buyback resolved at this time, is 100.9%. We will continue to provide appropriate returns to our shareholders and aim to enhance our corporate value while further deepening our dialogue with the capital markets.

On behalf of everyone at MIXI, Inc., we thank you for your continued support.