Financial Results for the First Quarter: Fiscal Year Ending June 30, 2012

The quarterly financial briefing presents GREE, Inc.’s first‑quarter results for the fiscal year ending June 30 2012, emphasizing rapid global expansion and robust revenue growth. Net sales surged 44 % QoQ to ¥30,432 million and 145 % YoY to ¥21,093 million, driven by a 49.5 % jump in paid‑services sales and an 8.2 % rise in advertising media sales. Operating profit climbed 70 % QoQ to ¥16,646 million and 168 % YoY to ¥9,789 million, while net income rose 66 % QoQ and 156 % YoY. Consolidated financials, prepared from the third quarter of FY2011, show that new goodwill amortization and rental charges were offset by sales growth, enabling record profit levels.

User metrics underscore GREE’s global reach: registered users topped 155 million worldwide, with Japan contributing 17.8 %. The company maintains a leading position in Japan’s smartphone platform, offering 659 applications of which 200 are fee‑based. Internationally, offices in North America, China, Europe, and South America support a portfolio of 7,500 worldwide smartphone applications. Monetization is expanding through diversified payment methods (carrier billing, WebMoney, BitCash) and a growing in‑house social game library.

Operational highlights include the launch of a unified global platform slated for FY2012H2, integration of OpenFeint into the new API/SDK, and establishment of subsidiaries across Asia, Europe, and Latin America. The company also announced a venture‑capital arm, GREE Ventures, to invest in internet startups and acquired the parent of Kawaii Pet MEGU, adding a popular mobile title to its game portfolio.

Financial forecasts for FY2012 were revised upward: net sales now target ¥130–140 billion (up 40 % from the prior estimate), operating profit ¥60–70 billion, and net income ¥33–39 billion. The revisions reflect faster monetization in Japan, conservative sales assumptions overseas, and higher operating costs due to expanded server infrastructure and staffing. The briefing concludes with a comprehensive safety and security framework, detailing content moderation, age verification, and educational outreach initiatives to safeguard users.