FinancialGREE
Financial Results for the Third Quarter of the Fiscal Year Ending June 30, 2012
8 May 201239 pages~20 min full read
GREE, Inc. achieved record-breaking growth in Q3 2012, with net sales rising 182% year-over-year to 46.2 billion yen and operating profit increasing 199% to 24.5 billion yen.
The company expanded its global user base to 234 million members, supported by a 170% increase in total assets to 125.4 billion yen.
International expansion was driven by the $210 million acquisition of Funzio and the launch of titles like Zombie Jombie, alongside a new global platform supported by partnerships with Ubisoft and Level-5.
To mitigate risks in the social gaming sector, GREE implemented a 24/7 monitoring system with 450 staff and enforced monthly spending limits for minors.
Safety and compliance initiatives, including strict spending caps, successfully reduced unauthorized Real Money Trading activity by 50%.
Revenue streams were diversified across social games, virtual avatars, and mobile advertising, bolstered by the performance of domestic titles like Tanken Doliland.
GREE, Inc. achieved record-breaking financial performance during the third quarter of the fiscal year ending June 30, 2012, characterized by a 182% year-over-year increase in net sales to 46.2 billion yen and a 199% surge in operating profit to 24.5 billion yen. This growth was underpinned by a massive expansion of the global user base to 234 million members, facilitated by the acquisition of OpenFeint and the strong performance of high-ARPU demographics in the Japanese market. Total assets grew by 170% to 125.4 billion yen, reflecting a period of aggressive capital investment and market consolidation aimed at establishing a dominant position in the mobile social gaming sector.
Strategic expansion into international markets, particularly the United States, served as a primary growth lever through the $210 million acquisition of Funzio and the successful launch of titles such as Zombie Jombie. To unify its disparate regional operations, the company prepared for the May 2012 launch of a global platform supported by high-profile intellectual property partnerships with developers like Ubisoft and Level-5. These alliances, combined with enduring domestic hits like Tanken Doliland, created a diversified revenue stream spanning social games, virtual avatars, and mobile advertising.
Sustainability and corporate responsibility emerged as core operational priorities alongside financial growth. To mitigate risks associated with social gaming, rigorous safety initiatives were implemented, including a 24/7 monitoring system staffed by 450 personnel and strict monthly spending limits for minors. These measures successfully reduced unauthorized Real Money Trading activity by 50%. By balancing aggressive global acquisition strategies with enhanced user protection protocols, the company sought to stabilize its rapid scaling within the evolving mobile ecosystem.
