FinancialGREE
Financial Results for the First Quarter: Fiscal Year Ended June 30, 2011
21 pages~9 min full read
Key insights
6 takeaways · ~2 min read- 01GREE reported strong quarterly growth with net sales rising 13% to ¥12.41 billion, operating profit increasing 18% to ¥6.22 billion, and net income climbing 19% to ¥3.70 billion.See it on page 3
- 02Revenue growth was primarily driven by the success of first-party titles like 'Pirate Kingdom Columbus' and the introduction of a monthly fee model for 'Hacöniwa'.See it on page 11
- 03The company reached 22.46 million members by September 2010, with a demographic profile where 46% of the user base is aged 30 or older.See it on page 2
- 04Operating expenses increased across the board, with cost of sales rising 25% due to higher rental charges and advertising spend growing by 22%.See it on page 6
- 05GREE is aggressively expanding its ecosystem by opening its platform to third-party developers and launching mobile services for smartphones.See it on page 14
- 06International expansion efforts include plans to open offices in North America and Asia, alongside a partnership with Project Goth, Inc. to target emerging mobile social networking markets.See it on page 14
Summary
GREE, Inc. reported first‑quarter financial results for the fiscal year ending June 30 2011, showing a 13 % rise in net sales to ¥12.41 billion versus the prior quarter and an 18 % increase in operating profit to ¥6.22 billion. Net income climbed 19 % to ¥3.70 billion, driven by higher paid‑service and advertisement revenues linked to new first‑party titles such as “Pirate Kingdom Columbus” and the launch of a monthly fee plan for “Hacöniwa.” The company’s user base reached 22.46 million members by September 2010, with 46 % aged over 30, and mobile traffic accounted for a growing share of page views.
Operating expenses rose modestly; cost of sales increased by 25 % mainly due to higher rental charges, while advertising spend grew 22 %. Labor costs and SG&A expenses also rose, reflecting continued investment in development and marketing. Cash flow from operations turned negative for the quarter, offset by a significant inflow of ¥8.78 billion from investment activities and a reduction in financing cash outflows.
GREE expanded its platform by opening the “GREE Platform” to third‑party developers, partnering with hosting and customer‑support firms, and launching a mobile service on smartphones. Geographic outreach plans include opening offices in Asia and North America and partnering with Project Goth, Inc. to tap emerging‑market mobile SNSs. The company maintained a robust safety framework through its GREE Patrol system and age‑restriction policies, reinforcing user protection amid rapid growth.
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