Last Update 30 Jun 26
Successful monetization of bitbank investment
Capital recycling – MIXI has announced that it will dispose of its 26.2% stake in cryptocurrency exchange bitbank, which is expected to generate a ¥12.23bn extraordinary gain. We view this as a positive development, as the company has successfully monetized a strategic asset and enhanced its financial flexibility. We have incorporated the company's disclosed estimate of the extraordinary gain into our FY3/27 forecasts. However, the final impact on net income attributable to owners of the parent, EPS, and cash flow may vary depending on the final tax and accounting treatment and any transaction-related costs. Overall, we view this event as portfolio optimization, as the company’s strategic priorities have evolved with the Sports segment becoming the company’s primary long-term growth initiative.
Revised our FY3/27 estimates
We reflect the extraordinary gain – The company has noted that this transaction will impact FY3/27 guidance and is under review. We have revised our earnings estimates for FY3/27 to reflect the ¥12.23bn extraordinary gain, increasing both EPS and FCF. The question shifts from the disposal itself to capital allocation, with investors likely to focus on whether the proceeds are redeployed into higher-return growth initiatives, including Sports, M&A, or shareholder returns.
Valuations – Based on our revised earnings estimates, the shares are trading at a FY3/27 PER of 7.9x and an FCF yield of 11.8%. The balance sheet remains cash-rich, with net cash and securities making up 57.1% 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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