MIXI Inc. more than doubled its quarterly profit as its sports business flourished and the company slashed costs in its digital entertainment segment.
Net income jumped 114.7% to ¥5.19 billion ($34.6 million) in the fiscal third quarter ended December, the Tokyo-based company said. Operating profit increased 24.3% to ¥8.28 billion, while revenue edged up 0.7% to ¥41.53 billion.
The sports division saw the strongest growth, with sales rising 20.8% to ¥10.16 billion, driven by ticket sales for the Chiba Jets basketball team and betting revenue from TIPSTAR, plus new contributions from the LaLa arena TOKYO-BAY facility. The segment turned profitable with EBITDA of ¥395 million, compared with a ¥16 million loss a year earlier.
The digital entertainment unit, which includes the “Monster Strike” mobile game, remains MIXI’s largest revenue source despite a 5.1% sales decline. EBITDA in this segment increased 14% to ¥12.3 billion after the company discontinued underperforming titles that had been launched as part of the “Monster Strike economic zone” strategy.
MIXI raised its full-year forecast, now projecting sales of ¥153 billion and net income of ¥17.5 billion, representing increases of 4% and 45.8% respectively from its previous outlook.
