GREE reported Q1 FY2018 net sales of ¥21.6 billion and operating income of ¥2.7 billion, marking four consecutive quarters of revenue growth.
Net income performance was impacted by a one-time ¥10 billion tax and profit effect from a prior-year North American reorganization, though underlying net income trended upward.
Growth in the gaming segment was driven by high-profile titles including Another Eden and SINoALICE, with a pipeline of six new titles scheduled for the remainder of the fiscal year.
Media and advertising operations saw significant expansion, with the LIMIA platform reaching one million monthly active users and total page views growing 2.4 times quarter-on-quarter.
The company increased advertising expenditure by over ¥500 million to support media growth, while maintaining operating margins through fixed cost reductions and labor optimization.
GREE is pursuing global expansion through strategic partnerships with entities including Crunchyroll and Sumitomo Corporation.
GREE, Inc. reported its financial results for the first quarter of fiscal year 2018, ending June 2018, highlighting a period of strategic transition and growth. The company achieved net sales of ¥21.6 billion and an operating income of ¥2.7 billion, marking four consecutive quarters of revenue growth. This performance was driven primarily by the successful release and operation of native mobile games and a stable browser-based business. While net income appeared lower year-on-year, the decline was attributed to a one-time ¥10 billion tax and profit effect from the previous year’s North American reorganization; excluding this, net income showed an upward trend.
The company’s strategy focuses on three pillars: native game development, global expansion, and media operations. In the gaming segment, GREE is leveraging high-profile intellectual properties (IP) and engine-driven development. Key titles such as Another Eden and SINoALICE performed well, with the latter benefiting from major collaborations. To drive future growth, the company is expanding into overseas markets through partnerships with entities like Crunchyroll and Sumitomo Corporation. The development pipeline remains active, with one title scheduled for release in the first half of the year and five more in the second half.
In the media and advertising sector, GREE is aggressively investing to expand its user base. Monthly active users for the LIMIA platform reached one million, and total page views across media properties grew 2.4 times quarter-on-quarter. To support this growth, the company increased advertising spending by over ¥500 million, focusing on domestic markets and TV commercials. Despite these rising variable costs and commission fees, GREE maintained stable operating margins by reducing fixed costs and optimizing its labor structure following the closure of certain overseas operations. The company expects moderate performance in the second quarter before a new wave of product releases.
