• Betting Sports remain the focal point – Q1 FY3/26 results were in line with guidance in our view, with the key takeaway being positive performance at the TIPSTAR (domestic keirin, or cycle team sports) betting service – MAU grew by over 60% YoY, resulting in 61.1% sales growth YoY. Although the material impact on earnings may be deferred, this activity is MIXI’s fastest-growing initiative, having the potential to dovetail effectively with the acquisition of Australia’s PointsBet Holdings, which we believe is approaching its final stages. We believe the company is showing evidence of undertaking a meaningful business realignment, with the Sports segment showing genuine potential to emerge as a key contributor to core earnings.
