Financial Results for the Second Quarter of the Fiscal Year Ending on June 30, 2012

This financial report details GREE, Inc.’s performance for the second quarter of the fiscal year ending June 30, 2012. The primary thesis centers on the company’s aggressive transition into a global mobile social gaming powerhouse, driven by the integration of the GREE and OpenFeint platforms. By December 2011, the group reached a global registered user base of 189.2 million, with international users significantly outnumbering the domestic Japanese audience, which accounted for 15.3% of the total.

Financial results for the quarter show record-breaking growth. Net sales reached 41.5 billion yen, representing a 190% year-over-year increase, while operating profit rose 225% to 22.5 billion yen. This performance was fueled by the steady monetization of smartphone services and a robust portfolio of both in-house and partner games. Paid service sales remained the dominant revenue driver, growing 39.2% quarter-over-quarter. Consequently, the company upwardly revised its full-year 2012 forecasts, projecting net sales between 160 and 170 billion yen.

The strategic focus remains on global infrastructure and smartphone expansion. GREE established nine global offices and formed capital alliances, such as with Mobicle in South Korea, to bolster development capabilities. The company is preparing to launch a unified global platform in the fourth quarter of 2012, supported by a diverse content lineup from major partners like Capcom, Konami, and Square Enix. Methodologically, the report utilizes consolidated financial data and internal user metrics to track growth across Japan, North America, Europe, and Asia, while emphasizing a commitment to platform safety through 24-hour monitoring and age-based restrictions.