FinancialGREE
FY2018 Second Quarter Financial Results
1 Feb 201835 pages~12 min full read
GREE reported Q2 FY2018 net sales of ¥19.5 billion and operating income of ¥2.3 billion, exceeding internal targets despite a quarter-over-quarter revenue decline.
Total costs decreased by ¥1.8 billion to ¥17.1 billion, primarily achieved through more efficient advertising spend and the closure of overseas business bases.
The company entered the console market with the global release of Fishing Star for the Nintendo Switch, marking a strategic expansion beyond its core mobile business.
GREE’s advertising and media segment saw significant growth, with page views for platforms LIMIA and MINE BY 3M increasing 1.8x quarter-over-quarter.
The company maintains a stable financial position with ¥83 billion in net cash and a consolidated headcount of 1,360 employees.
Future strategy focuses on a Japan-based development system for global distribution, supported by a pipeline of five new mobile titles and continued cost control.
Management forecasts Q3 net sales of ¥19.5 billion and an operating income of ¥2.5 billion.
GREE’s financial results for the second quarter of fiscal year 2018 reflect a period of strategic transition and cost optimization. The company reported net sales of ¥19.5 billion and an operating income of ¥2.3 billion, surpassing internal targets despite a quarter-over-quarter decline in revenue. This performance was supported by a significant reduction in total costs, which fell by ¥1.8 billion to ¥17.1 billion, driven primarily by more efficient advertising spend and the closure of overseas bases.
The report highlights a major strategic shift as GREE entered the console game market with the global release of Fishing Star for the Nintendo Switch. This move complements the core mobile game business, which focused on strengthening the operations of existing titles like Another Eden and SINoALICE while progressing a development pipeline of five new titles. Notably, the January release of Library Cross Infinite saw a strong start. In the advertising and media segment, the company achieved steady growth, with page views for platforms like LIMIA and MINE BY 3M increasing 1.8x quarter-over-quarter.
Geographically, the company is pivoting toward a Japan-based development system aimed at global distribution, utilizing a mix of first-party, co-developed, and third-party intellectual property. Financial data indicates a stable balance sheet with ¥83 billion in net cash and a consolidated headcount of 1,360 employees. Looking ahead to the third quarter, GREE forecasts steady net sales of ¥19.5 billion and a slight increase in operating income to ¥2.5 billion, maintaining a focus on cost control and the expansion of its "game engine, IP, and global" strategy across both mobile and console platforms.
