FinancialGREE
FY2017 Third Quarter Financial Results
27 Apr 201735 pages~11 min full read
GREE reported Q3 FY2017 net sales of ¥15.9 billion and operating income of ¥1.5 billion, marking quarter-on-quarter growth for both metrics.
See it on page 7Domestic native game performance recovered, with coin consumption rising to 5.4 billion following a successful release blitz of new titles.
See it on page 13The company released two new first-party IP titles, Rara-MAGI and A Farewell to Arms, and currently has ten titles in development, including the SINoALICE collaboration with Square Enix.
See it on page 19The acquisition and integration of subsidiary 3Minute drove record-high monthly sales, supporting a strategic pivot toward video-based advertising and lifestyle media.
See it on page 27GREE maintains a strong financial position with ¥79.4 billion in net cash, despite total costs increasing to ¥14.3 billion due to higher commissions and subsidiary consolidation.
See it on page 9Management forecasts steady Q4 performance with net sales of ¥15.9 billion and operating income of ¥1.4 billion as they focus on sustaining momentum from recent launches.
See it on page 9GREE’s financial results for the third quarter of fiscal year 2017 demonstrate a period of strategic transition and growth, characterized by a recovery in the domestic native game business and expansion into video-related media. The company reported net sales of ¥15.9 billion and operating income of ¥1.5 billion, representing quarter-on-quarter growth in both metrics. This performance was driven primarily by increased coin consumption in domestic native games, which rose to 5.4 billion coins following a successful "release blitz" of new titles.
The operational scope focuses heavily on the Japanese mobile gaming market, supplemented by overseas operations and a growing advertising and media segment. During the period, the company released two first-party IP titles, Rara-MAGI and A Farewell to Arms, both of which achieved strong starts in sales rankings. The development pipeline remains robust with ten titles in progress, including high-profile collaborations such as SINoALICE with Square Enix. Beyond gaming, the company integrated the new subsidiary 3Minute, which achieved record-high monthly sales, signaling a strategic pivot toward video-based advertising and lifestyle media.
Financially, the company maintains a strong balance sheet with ¥79.4 billion in net cash. While total costs increased to ¥14.3 billion due to higher commission fees and the consolidation of new subsidiaries, advertising expenses were reduced through improved efficiency. Looking ahead to the fourth quarter, the company forecasts steady net sales of ¥15.9 billion and operating income of ¥1.4 billion. The strategy centers on sustaining the momentum of recent launches and investing in the FY2018 pipeline to drive long-term top-line growth.
