FinancialGREE
FY2015 Fourth Quarter Financial Results
5 Aug 201545 pages~20 min full read
GREE reported a net loss of ¥10.3 billion for FY2015, primarily driven by a ¥14.2 billion goodwill impairment charge related to its North American subsidiary, Funzio.
Net sales for FY2015 reached ¥92.5 billion with an operating income of ¥20.2 billion, supported by a 16% reduction in fixed costs.
Quarter-over-quarter coin consumption fell 11% to 27.9 billion, reflecting weakening performance in legacy web games and international markets.
The company completed its strategic transition from web-based games to native mobile applications, resulting in a 30% improvement in retention for core titles.
GREE maintains a stable financial position with ¥76.4 billion in net cash and a significant reduction in interest-bearing debt.
To rebuild North American operations and drive growth in FY2016, the company plans to launch 15 new native titles and further reduce fixed costs by 10%.
The company is diversifying its business model beyond gaming by expanding into home services and health platforms to stabilize long-term revenue streams.
GREE concluded fiscal year 2015 with net sales of ¥92.5 billion and an operating income of ¥20.2 billion, though the bottom line was impacted by a net loss of ¥10.3 billion. This deficit primarily resulted from a ¥14.2 billion goodwill impairment charge related to the North American subsidiary, Funzio. While domestic native games such as Shometsu Toshi demonstrated growth, overall coin consumption fell 11% quarter-over-quarter to 27.9 billion, driven by weakening performance in overseas markets and the legacy web game segment. Despite these challenges, the company fortified its liquidity, ending the period with ¥76.4 billion in net cash and issuing a memorial dividend to mark its tenth anniversary.
The strategic transition from web-based games to native mobile applications reached completion during this period, yielding a 30% improvement in retention for core titles. To address underperformance in international markets, the company acquired the developer Twiitch to enhance mid-core capabilities in North America. Operational efficiency remained a priority, as evidenced by a 16% reduction in fixed costs and the maintenance of profitability across both web games and emerging business ventures like Renoco and Lespas. Total assets and net assets saw a year-over-year decrease, yet the financial foundation remained stable through a significant reduction in interest-bearing debt.
Looking toward fiscal year 2016, the objective is to achieve sustainable growth by launching 15 new native titles and rebuilding North American operations. Management aims to further reduce fixed costs by 10% through streamlined operations and lower selling, general, and administrative expenses. Beyond gaming, the strategy involves diversifying into home services and health platforms to stabilize revenue streams. By balancing aggressive native game development with rigorous cost management and expansion into new business sectors, the company intends to pivot back toward long-term profitability and market relevance.
