FinancialGREE
Financial Results for the Fourth Quarter of the Fiscal Year Ended on June 30, 2011
8 Aug 201125 pages~16 min full read
GREE achieved record growth in fiscal year 2011 with net sales of 64.2 billion yen, including a 93% year-over-year increase in fourth-quarter net sales to 21.1 billion yen.
The acquisition of OpenFeint expanded GREE’s global user base to 123.6 million, significantly increasing its reach beyond its 26.4 million domestic Japanese users.
Operating profit for the fourth quarter rose 85% year-over-year to 9.8 billion yen, with paid services serving as the primary revenue driver at 18.4 billion yen for the quarter.
The company projects continued growth for fiscal year 2012, forecasting net sales between 90 and 100 billion yen.
Strategic globalization efforts include establishing physical offices in Beijing, Singapore, and London, alongside platform standardization partnerships with Tencent and mig33.
GREE is targeting a long-term goal of 300 million global users by shifting focus toward in-house smartphone game development and forming alliances with carriers like KDDI and SK Telecom.
This financial report details the performance of GREE, Inc. for the fourth quarter and full fiscal year ending June 30, 2011. The primary thesis centers on the company’s rapid transition from a domestic Japanese social networking service to a global mobile gaming platform. A major milestone highlighted is the expansion of the global user base to 123.6 million following the acquisition of OpenFeint, significantly extending the company's reach beyond its 26.4 million users in Japan into North America, Europe, and China.
Financial data indicates a period of record growth. Fourth-quarter net sales reached 21.1 billion yen, representing a 93% year-over-year increase, while operating profit rose 85% to 9.8 billion yen. For the full fiscal year 2011, net sales totaled 64.2 billion yen. Revenue is primarily driven by paid services, which contributed 18.4 billion yen in the final quarter, supplemented by a steady advertising business. The company’s demographic data shows a balanced gender split and a high concentration of users in their 20s and 30s, which supports high average monthly usage per capita.
The strategic scope of the report emphasizes smartphone globalization and ecosystem expansion. Key initiatives include standardizing platform specifications with international partners like Tencent and mig33, as well as establishing a physical presence in Beijing, Singapore, and London. Methodologically, the report utilizes consolidated financial statements and internal user tracking data to project a fiscal year 2012 forecast of 90 to 100 billion yen in net sales. Conclusions point toward a long-term goal of 300 million global users, supported by an aggressive shift toward in-house smartphone game development and strategic alliances with major carriers such as KDDI and SK Telecom.
