Last Update 17 Aug 26
Stronger-than-expected quarter
Q1 FY3/27 results update
Digital Entertainment shining through – With OP growth at 102.8% YoY, Q1 FY3/27 results were a positive surprise underpinned by a highly robust performance at the Digital Entertainment segment. This was driven by an increase in the paying-user ratio and a rise in ARPU from successful initiatives such as events and IP collaborations for the core ‘MONSTER STRIKE’ title, which appear repeatable in our view. All business segments recorded positive EBITDA, and the Sports segment sustained underlying double-digit growth, driven by the domestic Betting business. The focal social betting business, TIPSTARS, is navigating a changed market environment but demonstrated its competitiveness with 12.8% YoY sales growth; the trajectory here remains positive.
Earnings visibility improved
Estimating further upside – The company has upwardly revised FY3/27 guidance at the net income level, recognizing the extraordinary gain expected from the disposal of its stake in cryptocurrency exchange bitbank. DPS was raised from ¥125, based on a 5% DOE, to ¥155, based on a 40% payout ratio. We have raised our earnings estimates for FY3/27 and beyond, primarily to reflect 1) flat sales YoY at the Digital Entertainment segment, while previously we expected an 8% decline YoY, and 2) higher profitability from the Investment segment given the increase in invested capital.
Valuations – Based on our revised earnings estimates, the shares are trading at a FY3/27 PER of 7.9x, an FCF yield of 11.4%, and a dividend yield of 4.7%. The balance sheet remains cash-rich, with net cash and securities making up 47.9% of current market capitalization.
Full report here
Q3 FY3/26 results update:
Sports segment to lead the way – Q1–3 FY3/26 results reflected acquisitive sales growth following the consolidation of PointsBet Holdings, highlighting MIXI’s strategic shift toward the Sports segment. While the Betting business remains in an investment and scaling phase, strong user momentum was evident, with MAUs up 80% YoY, indicating growing traction for the TIPSTAR platform. Earnings decline in the mature Digital Entertainment segment is being managed with cost optimization, and the Lifestyle segment has improved profitability YoY. Overall, the current trajectory supports the Sports segment's potential to deliver a material long-term earnings contribution.
Cash-generative core supports transition – While the core cash-generative Digital Entertainment segment continues to deliver high returns, recent trends highlight the need to establish a new, meaningful earnings driver over time. The soft launch of the global version of ‘MONSTER STRIKE’ (‘STRIKE WORLD’) in India in mid-February 2025 may provide a longer-term growth opportunity, although material contributions are likely to emerge gradually.
Valuations – Based on our unchanged earnings estimates, the shares are trading at a FY3/27 PER of 13.5x and an FCF yield of 10.1%. The balance sheet remains cash-rich, with net cash and securities making up 46.1% of current market capitalization. Our assumptions for future total shareholder return imply a 100% payout ratio.
Full report at this link
Description: MIXI Inc. is a digital content company with the ‘MONSTER STRIKE’ mobile gaming franchise, the ‘FamilyAlbum’ video and photo-sharing app, and sports interests ranging from professional sports clubs to sports betting services.
This note was first published on 5 February 2026
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