[Company analysis] Dena Co., Ltd. (ディー・エヌ・エー)

「Dena Co., Ltd. (ディー・エヌ・エー)」is a Japanese Internet-related company, whose main business is mobile game development, SNS management and EC(electronic commerce) services. This company owns「Yokohama DeNA BayStars(横浜DeNAベイスターズ)」, a professional baseball team, and「Kawasaki Brave Thunders(川崎ブレイブサンダース)」, a professional basketball team. The number of consolidated employees is approximately 2,437.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Dena Co., Ltd.
Company name (Japanese)	ディー・エヌ・エー
Date of establishment	Thursday, March 4, 1999
Headquarters location	〒150-8510 東京都渋谷区渋谷2-21-1 渋谷ヒカリエ 21 - 26階
Capital	10,397
Consolidated sales	124,116
Consolidated operating profit	13,512
Consolidated total assets	296,460
Consolidated capital	256,865
Capital adequacy ratio	86.6%
Consolidated number of employees	2,437

 

 

 

2. Summary and Features

 
「DeNA」, which is famous for operating professional baseball teams and mobile games, starts as an auction site established by Tomoko Minamiba(南場智子) in March 1999. In November of the same year, they started "Mobaoku (mobile phone auction site)" service. It has grown to be listed on the first section of the Tokyo Stock Exchange in 2005.

Currently, the game, e-commerce, and sports are the main business of「DeNA」. In the case of the game business, the past feature phone era was its best days. At that time, "Mobage Town(モバゲータウン)", their social network service was extremely popular. However, current sales of their game business was considerably fallen, because their reaction to the smartphone era was delayed.

To overcome this situation, in March 2015 they started a business and capital tie-up with「Nintendo(任天堂)」. As a result of successful launch of "Super Mario Run(スーパーマリオ ラン)", "Fire Emblem Heroes(ファイアーエムブレムヒーローズ)", "Doubutsu no Mori Pocket Camp(どうぶつの森ポケットキャンプ)", this company were able to recover the sale of game business to some extent. Nevertheless, about 70% of the total sales of「DeNA」depends on this game business.

 

Another main business is "Mobaoku", the auction site service since the founding of「DeNA」. In 2004, when they initiated this service, the sales were very high, but now it is considerably decreased. This company also implemented a travel agent business under the name「DeNA Travel」in the past. However, they sold this business in May 2018, in order to conduct selection and concentration strategy.

 

The most successful business that「DeNA」has, is the sports business. When they bought「Yokohama DeNA Baystars」, to promote their brand name, no one could expect this will contributes total sales. However, after purchasing "Yokohama Stadium" for about 10 billion yen in October 2015,「DeNA」were able to improve profitability by admission and selling food and beverages.

 

Besides, they also provide payment agency services through their affiliate,「Paygent Co., Ltd.(ペイジェント)」that was launched in 2006 as a joint stock company of「Mitsubishi UFJ Financial Group, Inc.」and「DeNA」. At the time, Mitsubishi, which tried to increase the number of credit card affiliated stores, hoped for the synergy effect of cooperating with「DeNA」which has Internet-related know-how. So, this joint venture was realized.

 

 

 

3. Major Business

 

■ Game business
It is the main business of「DeNA」and has been developing games for mobile devices since 2006.

■ E-Commerce business
They released "Mobaoku", an auction site that allows you to list and make a bid on your smartphone or mobile at any time. In addition, "Paygent" business is also included in this section.

■ Sports business
From December 2011, they entered the professional baseball field. And from July 2018, they purchased the professional basketball field. 

 

■ New business
Currently, they are developing new businesses such as automobile business(taxi dispatch application service), health insurance business, and social live service.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		143,806	139,390	124,116
Consolidated operating profit		23,178	27,503	13,512
Consolidated total assets		298,260	344,609	296,460
Consolidated net assets		236,696	271,150	256,865
Breakdown of sales	Game business	101,288	97,917	83,530
	E-Commerce business	18,383	15,351	11,638
	Sports business	13,701	16,713	17,950
	Traffic system business	197
	Healthcare business	2,233
	New business and others	10,435	9,410	8,568