FinancialGREE
Financial Results for the Second Quarter of the Fiscal Year Ending on June 30, 2011
1 Feb 201126 pages~15 min full read
GREE, Inc. achieved record net sales of 14.3 billion yen for the quarter ending December 2010, marking a 75% increase year-over-year.
See it on page 3Operating profit grew to 6.9 billion yen, a 36% increase over the previous year, despite heavy investment in data center infrastructure and personnel for its 23.83 million subscribers.
See it on page 3Paid service revenue rose 18% quarter-over-quarter, driven by the monetization of original titles such as Pirate Kingdom Columbus and Monster Planet.
See it on page 5The GREE Platform ecosystem expanded rapidly, doubling its title count to 560 within three months and introducing new monthly fee plans for partner applications.
See it on page 11The company initiated an international expansion strategy by establishing a U.S. subsidiary and forming a partnership with Tencent to enter the Chinese market.
See it on page 18GREE is aggressively pivoting its business model toward smartphones, launching Android beta versions and free casual games for iOS to supplement its core feature phone segment.
See it on page 12To support a global user base, the company implemented enhanced safety protocols, including 24-hour monitoring and age verification systems for younger users.
See it on page 23This financial report details the performance of GREE, Inc. for the second quarter of the fiscal year ending June 30, 2011. Covering the three-month period from October to December 2010, the data reflects a period of significant growth for Japan’s largest social networking service. The company reported record net sales of 14.3 billion yen, representing a 15% increase quarter-over-quarter and a 75% increase year-over-year. Operating profit reached 6.9 billion yen, up 36% from the previous year, despite increased investments in data center infrastructure and personnel to support a growing user base of 23.83 million subscribers.
The primary drivers of this financial success were paid services and the expansion of the GREE Platform. Paid service sales rose 18% quarter-over-quarter, fueled by the monetization of original titles such as Pirate Kingdom Columbus and Monster Planet. The platform ecosystem also matured, doubling its title count to 560 within three months and introducing monthly fee plans for partner applications. While feature phones remained a core segment, the company aggressively pivoted toward smartphones, launching beta versions for Android and free casual games for iOS.
Strategic expansion and safety initiatives define the forward-looking outlook. GREE established a U.S. subsidiary and formed a major partnership with Tencent to enter the Chinese market, aiming to share APIs and cross-promote social games internationally. Simultaneously, the company implemented rigorous safety measures to protect younger users, including 24-hour monitoring, age verification through carrier data, and functional restrictions on interactions between minors and adults. These efforts aim to maintain a secure environment as the company transitions its social graph-based advertising and gaming services to a global, smartphone-centric market.
