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DeNA results

Mobile social game developer reports dosh rolling in.

Nov. 4, 2010. San Mateo, Calif.- On the heels of a massive ngmoco acquisition, DeNA is announcing the results of their second financial quarter today. Among other things, DeNA is reporting that they had another record-breaking revenue last quarter, which puts them in position to eclipse their projected $1.25 billion in revenue, and their average revenue per user puts them far ahead of Zynga and Facebook.

DeNA determined that that their ARPU is comparatively larger than Zynga and Facebook’s. When you match them side by side, DeNA’s ARPU is 15x larger than Zynga and 30x larger than Facebook by their calculations. DeNA attributes their significantly larger earnings-per-user to two main factors: a wider area of focus and larger viral presence.

Increasing user engagement through site diversity

While Facebook is solely a social networking site and Zynga is exclusively a gaming site, DeNA combines aspects of social networking and gaming. This diversity increases user involvement and, in turn, the total ARPU.

• Larger viral presence across virtual social graph

DeNA's social games are designed to generate stronger social obligation and larger word of mouth within the community. The social network is dedicated to creating a virtual social graph as opposed to a real social graph, which has a distinct advantage in the sense that people can easily get connected through their favorite games whereas your real friends do not necessarily like the same games as you do.

Due to factors like their impressive ARPU, DeNA is still seeing a steady increase in revenue compared to previous quarters. This quarter, they’re reporting a record-breaking $336.4 million. This is a 12 percent increase from last quarter and a 216 percent increase from the second quarter of last year.

Operating income this quarter was $168.7 million. This shows a 342 percent increase from last year’s second quarter and a 14 percent increase from last quarter.

These metrics put DeNA well on track to reach their end-of-year prediction of reaching $1.25 billion in revenue this year.

DeNA attributes the impressive revenue numbers largely to the contribution from virtual goods sales in social games and an expanding portfolio of popular game titles by third and first party developers.

“Through our various investments, DeNA has substantially increased its American presence this year,” says Tomoko Namba, CEO of DeNA. “This is in line with our cross-border, cross-device strategy of expanding DeNA to multiple regions on multiple platforms and devices.”

Looking forward to this year, DeNA plans on continuing to expand across borders and devices, and establishing a front-runner position in the global smartphone game market. The company also plans to continue their global business expansion, further utilizing ngmoco to increase their presence in the West.

About DeNA:

DeNA is the leading mobile social game developer and platformer, that operates Mobage-town, social gaming community, with $1 billion annual revenues (2010 run rate).

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Eric Gonzalez

DeNA Global, Inc.



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