FinancialGREE
FY2016 First Quarter Financial Results
29 Oct 201528 pages~11 min full read
GREE achieved an operating income of ¥4.4 billion in Q1 FY2016, marking quarter-on-quarter growth despite a decline in net sales to ¥19.3 billion.
See it on page 5The company reduced total costs by ¥1.8 billion by cutting advertising spend, server leasing fees, and reducing headcount from 1,634 to 1,475 employees.
See it on page 8GREE revised its first-half earnings forecast upward to ¥37.0 billion in net sales and ¥7.0 billion in operating income.
See it on page 9Domestic native game performance reached a one-year high in coin consumption, driven by titles such as Naruto: Shinobi Collection Shippu Ranbu and Shometsu Toshi.
See it on page 13The web game segment maintained profitability despite declining coin consumption by shifting operations offshore to Vietnam and improving management efficiency.
See it on page 19The company has a pipeline of 14 titles in development, including projects like memories of the Blue and various IP-based games scheduled for release in winter 2015.
See it on page 12New business ventures in home-related services and health platforms, specifically Renoco and Lespas, showed steady expansion during the period ending September 30, 2015.
See it on page 21GREE’s financial results for the first quarter of fiscal year 2016 reflect a strategic shift toward profitability through rigorous cost management and the stabilization of its native game portfolio. The company achieved an operating income of ¥4.4 billion, representing quarter-on-quarter growth despite a slight decline in net sales to ¥19.3 billion. This performance was driven by a ¥1.8 billion reduction in total costs, achieved through lower advertising spend, reduced server leasing fees, and a streamlined consolidated headcount, which fell from 1,634 to 1,475 employees.
The domestic native game segment showed resilience, with coin consumption reaching its highest level in a year. Growth was primarily fueled by titles such as Naruto: Shinobi Collection Shippu Ranbu and Shometsu Toshi. While the web game business continues to face a downward trend in coin consumption, the company maintained profitability in this segment by shifting operations offshore to Vietnam and improving management efficiency. Overseas operations also stabilized, halting the decline in monthly coin consumption through firmer trends in the July-September period.
Looking ahead, the first-half earnings forecast has been revised upward to ¥37.0 billion in net sales and ¥7.0 billion in operating income. The pipeline remains robust with 14 titles in development, including high-profile projects like memories of the Blue and various IP-based titles scheduled for winter 2015. Additionally, new business ventures in home-related services and health and fitness platforms, such as Renoco and Lespas, demonstrated steady expansion. These results cover GREE’s global operations across Japan, North America, and South Korea for the three-month period ending September 30, 2015.
