DeNA Cuts Profit Outlook on Goodwill Impairment Despite Solid Core Businesses

DeNA Co ( (JP:2432) ) has provided an update.

DeNA has revised its consolidated earnings forecast for the fiscal year ending March 31, 2026, lowering its projections for IFRS-based operating profit and non-GAAP operating profit, while keeping revenue broadly in line with previous expectations. The company cited recent business performance trends, noting that its Game Business is tracking toward the upper end of prior guidance, and that both the Live Streaming and Sports businesses are performing steadily with a focus on profitability, but the headline IFRS operating profit outlook is being weighed down by newly recognized impairment losses.

The revision is driven mainly by a ¥9.6 billion impairment loss on goodwill related to Allm Inc. in the Healthcare & Medical Business, which has been booked as other expenses under IFRS, and a related ¥15.7 billion loss on valuation of shares of subsidiaries and associates expected to be recorded as an extraordinary loss in the non-consolidated results under Japanese GAAP. While these non-cash charges depress IFRS operating profit, they are excluded from non-GAAP operating profit, underscoring that the underlying operating performance in DeNA’s core segments remains resilient even as the company resets balance-sheet valuations in its healthcare-related investments, with implications for investors monitoring earnings quality and segment strategy.

The most recent analyst rating on (JP:2432) stock is a Buy with a Yen2738.00 price target. To see the full list of analyst forecasts on DeNA Co stock, see the JP:2432 Stock Forecast page.

More about DeNA Co

DeNA Co., Ltd. is a Japan-based digital entertainment and internet services company listed on the Tokyo Stock Exchange Prime market, with businesses spanning game development and operation, live streaming services, sports-related content, and healthcare and medical services. The company generates revenue primarily from online and mobile platforms, leveraging its portfolio of entertainment and lifestyle services to target domestic and global digital consumers.

Average Trading Volume: 2,210,486

Technical Sentiment Signal: Strong Buy

Current Market Cap: Yen281.4B

For an in-depth examination of 2432 stock, go to TipRanks’ Overview page.