FY2018 Fourth Quarter Financial Results

GREE achieved significant year-over-year growth during fiscal year 2018, recording net sales of ¥77.9 billion and operating income of ¥9.4 billion. This performance was primarily driven by the robust operational success of mobile titles such as SINoALICE and Another Eden, alongside the successful North American expansion of DanMachi. While the company missed initial profit forecasts due to aggressive upfront investments and a ¥3.15 billion impairment loss in the advertising and media segment, it maintains a strong financial foundation with ¥87.2 billion in net cash. A notable shift in consumer behavior is evident as coin consumption recovered to 22.9 billion in the fourth quarter, fueled by modern mobile applications that effectively offset the ongoing decline of legacy web-based gaming.

The strategic focus for the 2019 fiscal year centers on diversifying revenue through three core pillars: mobile games, vertical media, and live entertainment. The company is committing ¥10 billion to a dedicated subsidiary focused on the virtual YouTuber ecosystem while simultaneously scaling its vertical media platforms, which saw a nearly fivefold increase in page views across lifestyle and travel sectors. To support long-term sustainability, investments are being directed toward proprietary game engines and multiplatform development, including the Nintendo Switch, to broaden market reach beyond traditional mobile environments.

Geographically, the company is prioritizing full-scale overseas expansion to capitalize on the global mobile market. This transition is supported by a workforce of over 1,500 employees concentrated in the games and entertainment divisions. By balancing aggressive investment in emerging technologies like VTubers with the steady optimization of its existing game portfolio and media assets, the organization aims to establish a more resilient and diversified earnings structure for the coming years.