FinancialGREE
FY 2015 Third Quarter Financial Results
28 Apr 201530 pages~17 min full read
GREE reported Q3 FY2015 net sales of ¥22.0 billion and operating income of ¥4.9 billion, with full-year sales forecasts revised downward to ¥93.5 billion.
Operating income increased quarter-over-quarter despite declining sales, driven by a 12% reduction in total costs and significant cuts to mass-media advertising.
Total coin consumption fell 10% to 31.3 billion, with web-based games declining 11% while smartphone-based consumption grew to represent 77% of the total.
The company is aggressively pivoting to native mobile games, expanding its Japanese development operations to 20 pipelines and 600 personnel.
Growth is currently supported by titles such as Shometsu Toshi and The SAMURAI Kingdom, with international expansion efforts underway in Europe, China, and South Korea.
Diversification efforts include a home renovation platform reaching ¥100 million in monthly orders and the April 2015 launch of the Lespas fitness subscription service.
GREE’s financial results for the third quarter of fiscal year 2015 reflect a strategic pivot toward native mobile games amid a softening web-based game market. The company reported net sales of ¥22.0 billion and an operating income of ¥4.9 billion. While net sales declined quarter-over-quarter, operating income saw a slight increase due to aggressive cost-cutting measures, including a 12% reduction in total costs and a substantial decrease in mass-media advertising expenditures.
The data indicates a clear transition in user behavior and business focus. Overall coin consumption fell 10% to 31.3 billion coins, with web games experiencing an 11% decline. However, smartphone consumption now accounts for 77% of the total. To address these shifts, the company expanded its native game development operations in Japan to 20 pipelines and 600 personnel. Key performance drivers included the continued growth of Shometsu Toshi and the steady performance of titles like The SAMURAI Kingdom. The company is also preparing for global expansion by localizing U.S. titles for European markets and launching cross-border titles in China and South Korea.
Beyond gaming, the scope of operations includes emerging platform businesses in home-related services and health and fitness. The home renovation platform reached ¥100 million in monthly orders, while the Lespas fitness subscription service launched in April 2015 to tap into the broader wellness market. For the full fiscal year, the company revised its net sales forecast to ¥93.5 billion while maintaining an operating income target of ¥20.0 billion, signaling a continued reliance on strict cost controls and the anticipated contribution of new native game releases in the fourth quarter.
