FY2018 4Q Financial Results Presentation Transcript

This transcript details the financial results for GREE, Inc. for the fourth quarter and full fiscal year ending in 2018. The primary thesis of the presentation is that the company has successfully transitioned from a period of declining sales to a growth phase driven by a three-pillar strategy: mobile gaming, advertising and media, and the emerging live entertainment sector.

For the full fiscal year 2018, the company reported net sales of 77.9 billion yen and an operating income of 9.4 billion yen, marking the first increase in both sales and profit in six years. Fourth-quarter sales reached 19 billion yen with an operating income of 1.6 billion yen. While sales grew quarter-on-quarter, operating income was impacted by aggressive investments in growth businesses and an impairment loss on goodwill related to the acquisition of Three Minutes. To celebrate its 10th anniversary and reflect this return to growth, the company issued a commemorative dividend, bringing the total annual dividend to 14 yen per share.

The game business remains the company's foundation, with key titles like SINoALICE and Another Eden showing strong performance through reinforced operations and one-year anniversary events. A significant portion of the growth strategy involves global expansion; for example, the North American release of DanMachi increased its business scale by 1.5 to 2 times. Looking toward FY2019 and beyond, the company plans to release four to five titles annually and expand existing IPs into multi-platform environments, including Nintendo Switch and Facebook Instant Games.

The company is also heavily prioritizing its new live entertainment pillar, specifically focusing on the Virtual YouTuber (VTuber) ecosystem. This includes a planned 10-billion-yen investment and the establishment of a dedicated subsidiary, Wright Flyer Live Entertainment. Simultaneously, the advertising and media segment is being developed to create one of Japan’s largest vertical media portfolios. The geographic scope is primarily Japan, with increasing emphasis on North American, European, and Chinese markets.