MIXI Q2 FY2027: Net profit doubles, dividend hike planned

MIXI delivered higher revenue and profit in the first half, with revenue of ¥96.02 billion, up 42.4% year on year, operating profit of ¥12.582 billion, up 74.4%, and net income attributable to owners of the parent of ¥9.878 billion, up 101.5%.

• EBITDA: ¥19.005 billion, up 98.2% year on year, outpacing operating profit growth.
• Ordinary profit: ¥12.070 billion, up 67.3% year on year, rising alongside operating profit.
• Operating margin: 13.1%, up from 10.7% a year earlier.

Monster Strike, MIXI's flagship game, saw monthly active users decline, but higher average revenue per user and cost efficiencies supported profit growth. The expanded scope of consolidation in the sports business also contributed to revenue growth, making the first-half gains a result of multiple businesses rather than gaming alone.

Digital Entertainment and Sports led growth in revenue and profit. Sports results were also significantly affected by changes in the scope of consolidation, so its high growth rates should not be viewed as organic growth alone.

Digital Entertainment revenue rose 22.2% year on year, while segment profit increased 47.1%. Monster Strike's monthly active users declined, but higher average revenue per user and cost efficiencies helped lift profit.

Sports revenue increased 86.4%, and segment profit surged 520.8%. Results benefited from the consolidation of PointsBet Holdings, growth in Chari-Lot's comprehensive management of bicycle-racing venues and Net Dreamers' ticket sales. Profit also rose against a year-earlier period that included expenses related to the PointsBet acquisition. FC Tokyo benefited from transfer-fee income and ticket sales, and eight months of its results were consolidated this time following a change in its accounting period.

Lifestyle revenue grew 18.8%, while segment profit rose to ¥905 million from ¥72 million a year earlier. Growth came from premium subscriptions, photo printing, GPS and advertising services for Mitene, the family photo-sharing app, as well as sales from minimo.

• Investment: Revenue increased 14.3%, but segment profit fell 39.5%. Gains from the sale of holdings and results from investment funds were included, but profit was below the year-earlier level.

The sharp expansion in Sports includes the impact of acquisitions and the absence of some prior-year acquisition costs. In Gaming, higher average revenue per user and cost controls are offsetting a decline in users. A key focus is whether MIXI can sustain its user base while maintaining profitability.

MIXI left its consolidated forecast for FY2027 unchanged from the figures announced on July 31, 2026. Despite strong first-half profit growth, the company maintained its forecast for lower full-year operating profit compared with the previous fiscal year.

The earnings release did not repeat the amounts in the previous forecast or the prior-year results, so the table shows the published forecast figures and year-on-year comparisons. Investors should weigh the full-year forecast for lower operating profit alongside the first-half gains. The projected increase in net income also reflects an expected gain from the sale of bitbank shares, discussed below.

Total assets increased from the end of the previous fiscal year, while the equity ratio edged higher. Cash flow from operating activities swung to an inflow from an outflow a year earlier, while investing cash flow remained negative, partly due to purchases of investment securities.

• Dividend: The interim dividend was ¥60 per share. The company forecasts a ¥95 year-end dividend, bringing the annual total to ¥155, up ¥35 from ¥120 in the previous fiscal year.
• Treasury shares: MIXI cancelled 2.8 million treasury shares in May 2026. It had no cash outflow from treasury-share purchases during the first half.

MIXI generated cash from operations while investing in securities and returning capital to shareholders. Cash and cash equivalents stood at ¥109.571 billion at the end of the first half, down ¥1.619 billion from fiscal year-end. The planned dividend increase signals stronger shareholder returns, but investors will also assess how the company balances investment in acquired businesses with distributions.

MIXI sold all of its shares in bitbank, ending its investment relationship with the cryptocurrency-related business. The sale was completed on Oct. 1, 2026, after the end of the first half, and MIXI expects to book a one-time gain in the third quarter of FY2027.

• Sale price: ¥15.590 billion. The shares sold comprised 25,150 common and Class B preferred shares.
• Expected gain on sale: MIXI expects to record ¥12.581 billion as extraordinary income in the third quarter.
• Ownership after sale: 0%. bitbank was removed from the scope of equity-method accounting as of Sept. 30.

MIXI said it decided to sell from the perspective of medium-term growth and enhancing corporate value at both bitbank and the MIXI Group. The gain will boost net income, but it is distinct from recurring business earnings, so investors should assess it separately from operating profit and other measures of core performance.

MIXI posted strong first-half profit growth, but some business drivers include temporary consolidation effects and changes in market conditions. The company has cautioned that its forecasts involve risks and uncertainties, and actual results may vary for a range of reasons.

• Gaming user trends: Monster Strike's monthly active users are declining. If average revenue per user does not continue to rise, growth in revenue and profit could slow.
• Post-acquisition integration and amortization costs: The consolidation of PointsBet expanded the Sports business, but also brings goodwill and amortization expenses. The challenge is for business growth to outpace acquisition-related costs.
• Volatility in investment earnings: Investment segment profit declined year on year. Because results depend on share sales and investment-fund performance, the repeatability of earnings warrants attention.
• Reliance on one-time gains: The bitbank share sale is expected to generate extraordinary income. Investors should continue to assess the underlying earnings power of MIXI's core businesses without this gain.

Sports growth rates are particularly affected by the acquisition and by costs included in the year-earlier comparison. At the next earnings release, investors will be watching the gaming user base, profit contributions from acquired businesses and full-year earning power excluding one-time gains.