FinancialGREE
FY2017 Fourth Quarter Financial Results
3 Aug 201744 pages~16 min full read
GREE achieved a strategic turnaround in FY2017 with ¥65.4 billion in net sales and ¥8.0 billion in operating income, both exceeding initial projections.
See it on page 5Native mobile games now account for over 50% of total coin consumption, marking a successful transition away from legacy web-based gaming models.
See it on page 38The company's Q4 performance was bolstered by a release blitz that placed four new native titles in the top 20 sales rankings, driving quarterly coin consumption to 21.5 billion.
See it on page 13GREE maintains a strong financial position with ¥82.38 billion in cash reserves to support its FY2018 global development strategy.
See it on page 42The FY2018 roadmap includes the release of six new titles and a focus on diversifying revenue through advertising and media segments, such as the Library Cross Infinite joint venture.
See it on page 33Management projects Q1 FY2018 net sales of ¥20.5 billion, supported by a workforce of 1,463 employees focused on a Japan-based global development model.
See it on page 11Fiscal 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.
