FinancialGREE
FY2018 Third Quarter Financial Results
27 Apr 201843 pages~15 min full read
GREE reported Q3 FY2018 net sales of ¥17.9 billion and operating income of ¥2.8 billion, with the latter exceeding expectations due to cost-management initiatives.
See it on page 6The company maintains a strong liquidity position with ¥85.8 billion in net cash to fund future growth and strategic initiatives.
See it on page 41GREE is investing ¥10 billion into the live entertainment sector, specifically targeting the global Virtual YouTuber market to diversify its earnings.
See it on page 24The gaming segment remains the primary revenue driver, evidenced by 22.9 billion in total coin consumption and strong performance from titles like Another Eden, In Love with News, and the North American release of DanMachi.
See it on page 39The company is diversifying its platform strategy by expanding its console presence on the Nintendo Switch and utilizing internal game engines to scale its global footprint.
See it on page 22GREE employs a workforce of over 1,400 people operating under a strategic framework focused on game engines, intellectual property, and global development.
See it on page 42GREE’s financial performance for the third quarter of fiscal year 2018 reflects a strategic pivot toward a diversified, three-pillar business model comprising gaming, advertising and media, and live entertainment. While net sales reached ¥17.9 billion—slightly below initial targets—operating income exceeded expectations at ¥2.8 billion due to rigorous cost-management initiatives and enhanced operational efficiency. This profitability is underpinned by a robust liquidity position, with the company maintaining ¥85.8 billion in net cash to fund future growth initiatives.
The gaming segment remains a primary driver of revenue, characterized by the successful North American expansion of DanMachi and the strong domestic performance of titles such as Another Eden and In Love with News. Total coin consumption reached 22.9 billion during the quarter, bolstered by high user engagement and top-tier sales rankings for new mobile releases. Beyond mobile platforms, the company is actively expanding its console presence via the Nintendo Switch and leveraging its internal game engines and intellectual property to secure a global footprint.
A central component of the long-term strategy involves a ¥10 billion investment into the live entertainment sector, specifically targeting the burgeoning global Virtual YouTuber market. By integrating its existing expertise in virtual reality and 3D interaction, the firm aims to establish a sustainable earnings framework that complements its traditional digital media segments. This transition is supported by a workforce of over 1,400 employees focused on a "Game engine, IP, and global" development philosophy intended to ensure stability and growth in an evolving digital landscape.
