The following is a summary of the key questions and answers from the operating results briefing for the second quarter of FY2025, held on February 5, 2026.
【Q1】 Please provide a breakdown of the 20.7 billion yen in goodwill remaining after the impairment at the end of Q3.
【A1】 The main components of the goodwill at the end of Q3 are Allm Inc., the professional baseball business, and DATA HORIZON CO., LTD.
【Q2】 Regarding Allm Inc., there were concerns raised at the time of the acquisition.
Please tell us about the risks of additional impairment and the future of this business.
【A2】 As mentioned on page 18 of the Operating Results presentation materials, amid the evolution of the business model and changes in the business environment from our initial assumptions, we have thoroughly reviewed our initiatives for future growth and made appropriate revisions to our future plans for Allm Inc.
As part of this, we are practicing prioritization & focus on the three core areas and are making progress with fixed cost reductions. We intend to accelerate structural reforms and deliver results through our business operations.
【Q3】 Regarding the revision to the guidance, please provide details on the comparison with the previous guidance and the assumptions for Q4.
【A3】 While we do not disclose detailed guidance for each business segment, for the Game Business in Q4, we expect a slight decrease in revenue and profit compared to Q3. This is based on the assumption that virtual currency consumption will slightly decline compared to Q3, considering that Q3 was a period with a higher volume of initiatives, with higher volume initiatives due to one-year anniversary and other factors of Pokémon Trading Card Game Pocket at the end of October 2025.
In addition, the current guidance reflects factors such as the Sports Business being in its off-season and the Live Streaming Business, which, while performing well in terms of profitability, has benefited from large events during the period up to Q3.
【Q4】 Could you tell us about the outlook for Pokémon Trading Card Game Pocket?
【A4】 While our new user acquisition remains steady, the retention rate of existing users has declined compared to the initial launch period, and maintaining MAU has been a key area of focus. Specifically, we recognize the importance of initiatives that lead to improved login frequency and user retention rates, such as enriching the collection experience.
Our strengths lie in live operations, and based on the feedback we have received, we are sequentially implementing improvements to ensure that many users can enjoy the title over the long term. We will continue to work on this as an important title that contributes in the medium to long term while further strengthening the partnership among the three companies.
【Q5】 You mentioned that the reporting segment will change to the Sports & Smart City Business starting from the full-year results for FY2025. What is the expected scale of the Smart City related businesses?
【A5】 Inside BASEGATE YOKOHAMA KANNAI, which will have its grand opening on March 19, 2026, we plan to open our directly managed facilities, Wonderia Yokohama Supported by Umios, and THE LIVE Supported by Daiwa Jisho, on the same day.
While we anticipate that this will lead to the creation of excitement that goes beyond the expansion of the sports and live entertainment area, we will refrain from providing specific figures at this time.
【Q6】 Regarding the revenue for the Yokohama DeNA BayStars on page 15 of the Operating Results presentation materials, please tell us about the potential for further revenue growth in sponsorship income.
【A6】 Various revenues, including ticket sales, merchandise/food & beverage, and sponsorships, are comprehensively contributed to the year-on-year revenue increase. We plan to introduce more products that contribute to sponsorship revenue in the future. With support from many sponsors, we hope to grow this area.
【Q7】 The basic dividend policy has changed to target a DOE of approx. 3%. Taking into account the commitment for FY2026 (Non-GAAP operating profit of 15.0 billion yen), a reduction of equity may also be necessary to achieve the ROE level of 8%. Do you plan to update your approach to capital allocation in the future?
【A7】 On November 10, 2025, we announced the outline of policy for initiatives aimed at improving Action to Implement Management that is Conscious of Cost of Capital and Stock Price, including setting the ROE target in addition to the conventional commitments. Within these initiatives, we announced the basic dividend policy using a DOE-based approach today, as an area where we discussed, along with our dividend forecast. We plan to announce the progress on the action, including the capital allocation approach, within this fiscal year.