Mobile Factory, Inc. (3912) |
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Company |
Mobile Factory, Inc. |
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Code No. |
3912 |
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Exchange |
TSE 1st Section |
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Industry |
Information, Communication |
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President |
Yuji Miyajima |
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Address |
1-24-2 Higashi-gotanda, Shinagawa-ku, Tokyo |
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Year-end |
December |
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URL |
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*The share price is the closing price on August 1. The number of shares issued was obtained by subtracting the number of treasury shares from the number of outstanding shares as of the end of the latest quarter.
*ROE and BPS are the values as of the end of the previous term. |
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*The forecasted values were not provided by the company.
*It adopted consolidated accounting from FY ended December 2015. From FY ended December 2016, net income is profit attributable to owners of the parent. Hereinafter the same shall apply. *In October 2016, it implemented a 2-to-1 stock split. In July 2017, it implemented a 2-to-1 stock split. EPS in FY ended December 2016 are retroactively adjusted. This report outlines Mobile Factory's financial results for the first half of the FY ending December 2018 and its earnings estimates for the term ending December 2018. |
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Key Points |
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Company Overview |
The Company's two main pillars are the Social Apps Service led by location-based games and the Contents Service that provides contents such as ringtones. The Contents Service, for which the Company has over 10 years of experience, is a stable profit source, and the Social Apps Service, for which the Company has established its unique style, is the driving force of its growth. The Group consists of Mobile Factory and two 100% subsidiaries: G1 Dash, Inc., which carries out the operation of "Station Memories!" and "Eki Dash" series, and Bit Factory, Inc. which manages blockchain services.
Its management philosophy is "To make the people of the world happy through the things we create." The brand message is "Take your experiences with you".
【Business contents】
Business contents are the Social Apps Service led by location-based games and the Contents Service that provides contents such as ringtones. While the Social Apps Service offers free-to-play games but charges money for in-game items, the Contents Service charges a monthly flat-rate fee (there are some exceptions). As for the sales composition in the FY ended December 2017, social application services made up 65.5% and content services accounted for 34.5%.
Social Apps Service
The Company operates its business with a focus on "Station Memories!" and the "Eki Dash" series, which are location-based games, (the Company terminated the service of Rekishito Connect in September 2018) and distributes games through SNS platforms (GREE, Mobage, and Colopl, etc.) and through application markets (Apple Store, Google Play, etc.).
The "Eki Dash" series, which was released in March 2011, has 3 elements: a competition element in which the players compete to seize nearby stations, a life-log element in which the locations that the players actually visited are logged, and a collection element in which the players collect seized stations, train lines and titles. "Station Memories!" released in June 2014 still has the fun of capturing and collecting stations from the "Eki Dash" series and also has the enjoyment of raising original characters. Part of the illustration and scenario development is outsourced, but system development is carried out internally.
Contents Service
For the Contents Service, the Company mainly offers contents such as stamp images and ringtones through services operated by communication carriers. For ringtones provision, it has "Newest Songs Unlimited Downloads" as own-company model and "RecoChoku Melody" in partnership with RecoChoku Co., Ltd. as OEM model targeting smartphones and feature phones. Users can download unlimited ringtones from 100 yen (excluding tax) to 300 yen (excluding tax) per month.
One of the Company's strengths is high-quality sound developed internally as well as its system and know-how to add the sound from dramas, movies or TV commercials while they are still popular. The creation of ringtones' sound sources and development and operation of websites are managed internally (there are some exceptions). Other than ringtones, it offers an all-you-can-get service for stickers and melodies at a fixed rate. Since the launch of the service in May 2004, it has gained over 10 years of experience. By incorporating effective advertisement methods by the moment, it has been increasing users. Although the number of fee-paying members is on the decrease, the profitability is still high, because products are, in principle, developed internally and the profit of the remaining players is high. However, the Company is focusing on investing management resources in social application services and blockchain related services.
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1H of Fiscal Year December 2018 Earnings Results |
(1) Consolidated Business Results for 2Q (April to June)
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Future vision and endeavors |
In the short term, they aim to be the domestic industry leader in location-based games while endeavoring to develop blockchain related business for mid to long-term growth. As for location-based games, while attaching importance to the increase of new users and user retention rate, they will continue promotions, with "Station Memories!" as the driving force, and the Company will also continue various collaborations and interactive events. In addition, the Company will continue to engage in regional revitalization. They will attach importance to the stable operation of the "Eki Dash" series. Within blockchain related business, the Company will put effort into expanding the number of users of Uniqys Kit, a decentralized application development kit developed by the Company, and "Quragé" (mentioned later), a DApps (DApps: Decentralized Applications) browser application mounted with a wallet feature.
On the other hand, in the mid/long term, they will maintain the stable growth of O2O (online to offline) through collaborations with municipalities and railway business operators and "location-based games" in the field of regional revitalization and the stable growth of contents, and they will also focus on the development and operation of "Uniqys Network (mentioned later)" in the blockchain related business.
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Conclusions |
Presently, the number of applications based on Ethereum is only about 1,000, but the Company says that there is a possibility that it will grow 100 to 200 times in two or three years. The Company thinks that within this growing market, "Uniqys Network," which has contact with both users and developers, will create great value. Although it seems that an investment period of roughly two years will be necessary, the company plans to invest while believing its potential. Considering the increasing risk in the gaming business, it is advisable to allocate managerial resources into fields aside from games, and once business is on track, the Company will be able to expect stable sales and the profit structure will also change. We would like to pay attention to the progress of the Uniqys Project.
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<Reference: Regarding Corporate Governance> |
![]() Disclaimer
This report is intended solely for information purposes, and is not intended as a solicitation for investment. The information and opinions contained within this report are made by our company based on data made publicly available, and the information within this report comes from sources that we judge to be reliable. However, we cannot wholly guarantee the accuracy or completeness of the data. This report is not a guarantee of the accuracy, completeness or validity of said information and opinions, nor do we bear any responsibility for the same. All rights pertaining to this report belong to Investment Bridge Co., Ltd., which may change the contents thereof at any time without prior notice. All investment decisions are the responsibility of the individual and should be made only after proper consideration.Copyright(C) 2018 Investment Bridge Co.,Ltd. All Rights Reserved. |
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