Key insights
6 takeaways · ~2 min read- 01GREE reported its strongest quarterly performance of FY2011, with net sales rising 29% to ¥21,093 million and operating profit increasing 19% to ¥9,789 million.See it on page 3
- 02The company’s global user base reached 123.6 million, bolstered significantly by the acquisition of OpenFeint, which added 50 million users to the platform.See it on page 11
- 03Revenue streams showed strong diversification, with paid-service sales reaching ¥18,387 million and advertising revenue growing to ¥3,000 million.See it on page 22
- 04Operating expenses increased 37% year-over-year, driven primarily by a 27% rise in advertising spend and costs associated with data-center decentralization.See it on page 6
- 05Strategic expansion efforts included the launch of the 'GREE Market' app store on KDDI’s Android platform and new partnerships with Tencent and SK Telecom.See it on page 12
- 06Management forecasts for FY2012 target net sales between ¥90–100 billion and operating profit between ¥40–50 billion.See it on page 15
Summary
GREE, Inc. reported a robust fourth‑quarter performance for the fiscal year ending June 30 2011, driven by rapid user growth and expanding monetization across its global platform. Net sales rose 29 % to ¥21,093 million, while operating profit increased 19 % to ¥9,789 million; both figures represent the largest quarterly gains of FY2011. The company’s consolidated user base reached 123.6 million worldwide, with 26.4 million in Japan and a growing presence in the United States, Europe, China, and other Asian markets. The acquisition of OpenFeint added 50 million users and broadened GREE’s reach in emerging mobile markets.
Revenue diversification is evident: paid‑service sales grew to ¥18,387 million, and advertising revenue climbed to ¥3,000 million. The company launched “GREE Market,” a pre‑installed app store on KDDI’s Android platform, and expanded its in‑app billing to web, Android, and iOS. Operating expenses rose 37 % YoY, largely due to increased advertising spend (27 %) and rental fees for data‑center decentralization.
Strategic initiatives include standardizing smartphone platform specifications with mig33, partnering with Tencent and SK Telecom, and establishing a Beijing office to support development in China. Forecasts for FY2012 target net sales of ¥90–100 billion, operating profit of ¥40–50 billion, and net income of ¥22–28 billion, reflecting continued emphasis on user acquisition, platform expansion, and diversified revenue streams.
Cite this report
Citation
Generating citation...
