MIXI Inc. reported its profit more than doubled in the first nine months of the fiscal year as its sports betting business turned profitable and the company benefited from investment gains.
Net income jumped 123% to ¥10.4 billion ($69.3 million) in the April-December period, while operating profit surged 63% to ¥17 billion. Revenue rose 4.9% to ¥110.4 billion, the Tokyo-based company said Tuesday.
The social networking pioneer, best known for its Monster Strike mobile game, is diversifying away from its core gaming business through sports wagering and family-focused services. MIXI’s sports unit swung to a profit of ¥1.1 billion from a loss a year earlier, driven by rising online betting volumes through its TIPSTAR platform and strong merchandise sales from its FC Tokyo soccer team.
The company’s digital entertainment segment, which includes Monster Strike, saw revenue decline 6.1% as user engagement dropped following last year’s 10th anniversary campaign. However, profit from the unit increased 18% to ¥28.5 billion due to cost reductions and higher spending per user.
MIXI also recorded gains from selling part of its stake in Timee Inc., a job-matching platform, contributing to a sixfold increase in investment income.
The company maintained its full-year forecast for net income of ¥17.5 billion on sales of ¥153 billion, implying further profit growth in the current quarter. The stock trades at 14.3 times estimated earnings.
