FinancialGREE
Financial Results for the First Quarter of the Fiscal Year Ending on June 30, 2012
1 Nov 201125 pages~17 min full read
GREE achieved significant financial growth for Q1 ending September 2011, with net sales rising 145% year-over-year to 30.4 billion yen and operating profit increasing 168% to 16.6 billion yen.
The company raised its full-year net sales forecast by 40% to a range of 130–140 billion yen, driven by faster-than-expected monetization of smartphone content in Japan.
GREE reached 155.4 million registered users worldwide, with international users now accounting for over 82% of the total base.
Revenue growth was primarily fueled by a 49.5% quarterly increase in paid services sales, specifically from in-house social games and smartphone monetization.
The company is executing a global expansion strategy through the integration of the OpenFeint developer network and the establishment of new subsidiaries across Europe, Asia, and South America.
Strategic diversification efforts include the launch of GREE Ventures to target Southeast Asian startups and the acquisition of FEYNMAN Co., Ltd. to bolster the company's smartphone application portfolio.
This financial report details GREE’s performance for the first quarter of the fiscal year ending June 30, 2012, covering the period from July to September 2011. The primary thesis highlights the company’s rapid transition into a global mobile social gaming platform, driven by the integration of OpenFeint and aggressive expansion into international markets. During this period, GREE reached a milestone of 155.4 million registered users worldwide, with international users accounting for over 82% of the total base.
Financial results show significant growth, with net sales reaching 30.4 billion yen, a 145% increase year-over-year. Operating profit rose 168% to 16.6 billion yen, and net income grew 156% to 9.4 billion yen. This performance was fueled by a 49.5% quarterly increase in paid services sales, particularly from in-house social games and smartphone monetization. Consequently, the company raised its full-year net sales forecast by 40% to a range of 130–140 billion yen, citing faster-than-expected monetization of smartphone content in Japan.
The strategic focus remains on establishing a unified global platform by the second half of the fiscal year. This involves integrating the OpenFeint developer network, establishing new subsidiaries in Europe, Asia, and South America, and launching a robust lineup of in-house titles like "Tanken Driland" and "Sengoku Kingdom." Additionally, the company is diversifying its business through the launch of GREE Ventures to invest in Southeast Asian startups and the acquisition of FEYNMAN Co., Ltd. to strengthen its smartphone application portfolio. The report also emphasizes ongoing commitments to user safety through 24-hour monitoring and age-based restrictions.
