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

GREE, Inc. reported a robust second‑quarter performance for the fiscal year ending June 30 2012, driven by accelerated global expansion and monetization of its social‑gaming platform. Net sales rose 36 % to ¥41,529 million, marking a record high and reflecting a 39.2 % quarter‑on‑quarter increase in paid‑service sales alongside a 10.5 % rise in advertising revenue. Operating profit climbed 35 % to ¥22,535 million, and net income grew 35 % to ¥12,740 million, both surpassing the previous year’s figures by 225–250 %. The company achieved a consolidated registered user base of approximately 190 million worldwide, with Japanese users representing 15.3 %. Strategic initiatives included the launch of a unified global platform, integration with OpenFeint, and opening nine international offices to strengthen development and carrier partnerships. Monetization efforts expanded through the release of seven in‑house smartphone games, about 700 partner titles, and new payment methods such as PayPal and prepaid cards. Operating expenses increased in line with growth, particularly in rental charges (14 % QoQ) and advertising spend (54 % QoQ), yet sales growth outpaced cost escalation. Forecast revisions for FY2012 raised net‑sales expectations to ¥160 billion and operating profit to ¥80 billion, underscoring confidence in continued global market penetration and diversified revenue streams.