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Financial
FY2017 Second Quarter Financial Results
GREE’s financial results for the second quarter of fiscal year 2017 highlight a significant strategic pivot toward native games and new business segments, resulting in the first quarter-on-quarter sales growth in four years. Net sales reached ¥15.3 billion with an operating income of ¥1.5 billion. While sales grew, operating income saw a ¥1.0 billion decrease from the previous quarter, primarily due to increased advertising investments and depreciation costs following the acquisition of the DragonSoul title. The domestic native game market showed strong momentum, driven by a major update to Shometsu Toshi 2, which doubled coin consumption. The company maintains a robust development pipeline with ten titles in progress, including high-profile collaborations like the smartphone version of Wild Arms with ForwardWorks. Overseas, the acquisition of DragonSoul in October 2016 contributed to an upturn in the top line, with coin consumption in international markets rising to 3.6 billion. Conversely, the legacy web game business continued its downward trend, with coin consumption falling to ¥11.9 billion. Beyond gaming, there is a concerted effort to diversify into video-related and virtual reality (VR) businesses. The acquisition of 3Minute in February 2017 aims to accelerate growth in video media, where sales have already increased 3.5 times year-over-year. In the VR sector, the company began supplying attractions to amusement facilities like VR PARK TOKYO. Looking ahead to the third quarter, net sales are forecast to remain stable at ¥15.3 billion, while operating income is expected to decrease slightly to ¥1.2 billion as fixed costs rise with the launch of new titles in the second half of the fiscal year.
GREEFeb 2017
Financial
FY2016 First Quarter Financial Results
GREE’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.
GREEOct 2015
Financial
FY2017 Fourth Quarter Financial Results
Fiscal year 2017 marked a significant strategic turnaround for GREE, characterized by a successful transition toward native mobile gaming and a robust recovery in financial performance. The company reported annual net sales of ¥65.4 billion and operating income of ¥8.0 billion, figures that exceeded initial projections. This growth was primarily driven by a fourth-quarter release blitz where four new native titles reached the top 20 sales rankings. Consequently, quarterly coin consumption surged to 21.5 billion, with native games surpassing 50% of total consumption for the first time. This shift underscores a fundamental evolution in the revenue model from legacy web-based games to modern mobile applications. The operational focus for the upcoming 2018 fiscal year centers on a Japan-based global development model, leveraging established intellectual property and a proprietary game engine to scale international operations. Plans include the release of six new titles and aggressive upfront investments to solidify this global footprint. Beyond core gaming, there is a concerted effort to diversify earnings through the expansion of advertising and media segments, supported by high-quality video production and strategic joint ventures like Library Cross Infinite. These initiatives aim to establish a secondary pillar of profitability alongside the revitalized game business. Financial stability remains a cornerstone of the corporate strategy, as evidenced by a strong cash position of ¥82.38 billion at the close of the fiscal year. While native game consumption saw temporary fluctuations earlier in the period due to title transfers, the year ended with high momentum and a workforce of 1,463 employees concentrated in Japanese development hubs. Projections for the first quarter of fiscal year 2018 anticipate net sales of ¥20.5 billion, reflecting continued confidence in the current release pipeline and the long-term viability of the multi-genre investment strategy.
GREEAug 2017
Financial
FY2016 Fourth Quarter Financial Results
GREE, Inc. concluded fiscal year 2016 with net sales of ¥69.9 billion and an operating income of ¥14.2 billion, meeting internal forecasts despite a broader year-over-year decline in financial performance. The fourth quarter specifically reflected the impact of ¥1.0 billion in restructuring and one-off costs, resulting in a quarterly operating income of ¥2.2 billion. While domestic coin consumption in Japan dropped significantly from 25.0 billion to 17.5 billion coins over the year, the company successfully fortified its balance sheet. Net cash reserves grew to ¥80.2 billion, and the shareholders' equity ratio rose to 91%, supported by a ¥3.3 billion reduction in annual costs achieved through labor consolidation and lower commission fees. The strategic focus has shifted toward a transition from legacy web games to native mobile titles and diversified digital services. Although delayed releases hindered sales growth in 2016, the company is initiating a release blitz for fiscal year 2017, planning eight new native titles from Wright Flyer Studios and Pokelabo. This game-centric strategy is complemented by the expansion of third-party game operations and the Ad Media business, the latter of which saw video advertisement sales increase twentyfold. These efforts aim to establish more sustainable earnings pillars to offset the contraction of older segments. Beyond mobile gaming, investment is increasingly directed toward emerging technologies and platform services. Aggressive capital allocation continues in the virtual reality sector and home-related service platforms as part of a long-term diversification strategy. By streamlining the workforce to approximately 1,466 employees and focusing resources on the Japan Game Business, the organization seeks to leverage its high liquidity and reduced cost base to return to a growth trajectory through high-quality content production and expanded digital advertising reach.
GREEAug 2016