FY2018 First Quarter Financial Results

GREE’s financial results for the first quarter of fiscal year 2018 reflect a period of significant growth driven by the successful scaling of native mobile games and strategic investments in media operations. The company achieved net sales of ¥21.6 billion and an operating income of ¥2.7 billion, representing both quarter-on-quarter and year-on-year increases. This performance was primarily fueled by high coin consumption in hit titles such as Another Eden and SINoALICE, alongside the expansion of the advertising and media segment, where page views grew 2.4 times over the previous quarter.

The scope of these results covers the company’s consolidated global operations for the three-month period ending September 30, 2017. While the game and entertainment business remains the core revenue driver, the company is diversifying through its advertising and media arm and emerging VR initiatives. Geographically, the company is pivoting its strategy by closing certain overseas bases to reduce fixed labor costs while simultaneously signing joint publishing agreements with partners like Sumitomo Corporation to aggressively export Japanese anime-based intellectual property to international markets.

Methodological data indicates a shift in the cost structure, where a ¥2.73 billion increase in variable costs—driven by higher advertising spend and platform commission fees—was partially offset by a ¥0.64 billion reduction in fixed costs. The development pipeline remains robust with five titles currently in progress, primarily focusing on third-party IP. Looking ahead to the first half of FY2018, the company maintains a conservative forecast of ¥40.5 billion in net sales, anticipating a temporary decline in existing titles following their initial peak performance while continuing aggressive investment in growth-oriented media businesses.