DeNA Co. reported a dramatic turnaround in first-quarter earnings, with operating profit surging 620% as Pokemon Trading Card Game Pocket continued driving exceptional performance despite some cooling from its initial launch momentum.
The Japanese gaming company posted ¥41.7 billion ($282 million) in revenue for the three months ended June, up 22.8% year-over-year. Operating profit reached ¥13.8 billion ($93.4 million), while net income jumped 267% to ¥11.2 billion ($75.8 million).
Pokemon TCG Pocket, which launched October 30, remained the primary catalyst behind DeNA’s gaming division transformation. The mobile card collection title generated ¥18.1 billion ($122.6 million) in gaming segment revenue, representing a 61.7% increase. Gaming profits exploded by over 1,000% to ¥10.1 billion ($68.3 million).
The digital card game surpassed 100 million downloads and earned over $500 million globally within months of release, establishing itself as one of the most successful mobile game launches in recent years. DeNA noted the title maintains “very high retention rates” compared to its other properties, with substantial premium subscription uptake.
Beyond gaming, DeNA’s live-streaming business returned to profitability with ¥10 billion ($67.7 million) in segment earnings after posting losses last year. The Yokohama DeNABayStars baseball team contributed ¥11.4 billion ($77.1 million) in sports revenue, up 13.6% as attendance remained strong.
However, DeNA issued cautious full-year guidance, projecting revenue of ¥146-154 billion ($988 million-$1.04 billion), down as much as 11% from the prior year. Operating profit is expected to decline between 13.7% and 31% to ¥20-25 billion ($135-169 million).
The conservative outlook reflects management’s acknowledgment of Pokemon TCG Pocket’s natural deceleration from its explosive debut period. DeNA emphasized the difficulty of predicting in-game promotional impacts while building in volatility assumptions across both revenue and profit projections.
Chief executives indicated plans to prioritize long-term sustainability over short-term gains, with continued content updates and feature expansions planned for the card game throughout the fiscal year.
