DeNA results

San Mateo, Calif. - August 5, 2010 - On the heels of last financial year’s record-breaking annual fiscal results, DeNA is announcing today their continued success with record-high results for their first financial quarter. DeNA plans to use this momentum, paired with their social gaming expertise, to become the No.1 company in the global social gaming space.

Most notable from the report was DeNA’s quarterly operating income that, at about $138 million, was the company’s highest ever recorded. DeNA is also reporting revenue of $279 million. The jump in operating income represents a 282 percent increase from last year’s first quarter results. Revenue this quarter also saw a significant leap from last year, jumping up 175 percent. Compared to last quarter’s sales and operating incomes, this quarter saw 27 and 22 percent increases respectively.

“Becoming the premier social gaming company appears extremely feasible when reviewing our impressive first quarter results,” says Tomoko Namba, CEO of DeNA. “DeNA will expand by utilizing its uniqueness as a platform operator and game developer.”

DeNA has proven itself as a mobile game platform operator in terms of community management and monetization. Using its abundant funds, DeNA will promote mergers and acquisitions, and investments through its social gaming venture capital fund, Incubate Fund No.1 Limited Partnership, which established last May.

DeNA also plans to launch a PC-based social gaming platform, Yahoo! Moba-ge, with Yahoo! Japan. The platform will spread services across PC and mobile. Furthermore, DeNA is preparing to launch Moba-ge-town on smart phones this year.

This quarter, DeNA added two more in-house social games to its library and has been tuning up the existing games. Third party developers’ games also contributed largely to DeNA’s success in this first quarter. As of July 27, 154 third party developers provided 350 games on DeNA’s platform, Moba-ge-Town. Thanks to both in-house social games and third party developers’ games, DeNA’s social segment accounted for about 84 percent of DeNA’s total revenue this quarter. DeNA attributes the exceptionally high results to a greater emphasis on increasing in the number of games running on its mobile platform.

Avatar related sales in Moba-ge-town also recovered from a light dip in the third quarter of 2009, with revenue of $29 million, increased by 22 percent compared to the third quarter of 2009.

Also worth noting, DeNA’s consumer demographics have made a significant shift this quarter. The 10-and-under demographic of DeNA’s gamers decreased by five percent from last year while the 30-and-above group increased by six percent. The increase in older gamers, and their larger expendable incomes, was another cause in this quarter’s notable results.

Looking forward, DeNA expects continued growth, forecasting $576 million in revenue and $276 million in operating income from April to September of this year.

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About DeNA

DeNA is an operator of leading mobile gaming - SNS site in Japan well known locally as Moba-ge-Town, with over 19 million subscribers. DeNA is also an operator of e-commerce sites Mobaoku (mobile auction site), Mobakore (mobile fashion shopping site), Paygent (settlement), bidders (comprehensive B2C/C2C commerce site), and NETSEA Buyers Club (B2B marketplaces).

About DeNA Global

DeNA Global was founded in January, 2008 in San Mateo, California to pursue business opportunities around the world.