Virtual currency 'setback' causes DeNA Q3 profits drop

Mobile gaming giant DeNA has posted financial results for the third quarter of the current fiscal year, noting an increase in revenue but a drop in profits year-over-year. The company put this down to the October global launch of its Mobage social gaming network, along with a "temporary setback" in Moba-coin (Mobage's virtual currency) comsumption during the period. However, DeNA noted that overall Moba-coin consumption exceeded ¥40 billion ($518.9 million) during these three months. It also said that consumption has now "re-entered a growth phase" and is recovering. Finally, the company noted that it acquired a professional baseball team, the Yokohama DeNA BayStars, during this period, as a means of increasing its publicity. For the three months ended December 31, 2011, the company saw revenues of ¥27.3 billion ($354.7 million) from its game-related businesses, including item billing, in-game ads and affiliate programs. This was up from ¥20,856 million ($270.6 million) year-over-year. Overall, the company posted revenue of ¥34.2 billion ($443.0 million), up 16 percent compared to ¥29.5 billion ($382.6 million) year-over-year, and profits of ¥6.1 billion ($78.9 million), down 25 percent compared to ¥8.2 billion ($105.9 million) year-over-year. Looking to the rest of the fiscal year, the company said it is looking to increase Moba-coin consumption via "large-scale, effective promotion to maximize the exposure of flagship titles," while also strengthening its first-party title lineup. For the full 2011 fiscal year, the company forecasted revenue of ¥144.0 billion ($1.9 billion), up 27.7 percent compared to ¥112.7 billion ($1.5 billion) year-over-year, and profits of ¥32,600 million ($422.9 million), up 3.2 percent compared to ¥31,603 million ($410.0 million) year-over-year.