FinancialGREE
FY 2019 Third Quarter Financial Results
26 Apr 201929 pages~12 min full read
GREE reported Q3 FY2019 net sales of ¥17.6 billion and an operating income of ¥1.6 billion, with the latter showing significant growth over the previous quarter due to reduced fixed costs.
See it on page 2Mobile gaming remains the primary revenue driver at ¥13.65 billion, while the advertising and media segment contributed ¥3.99 billion.
See it on page 25International expansion is a core strategic focus, highlighted by the successful self-distribution of 'Another Eden' in eight regions and strong performance from 'DanMachi' collaboration events.
See it on page 18The company maintains a robust financial position with ¥86.3 billion in cash and equivalents as of March 31, 2019.
See it on page 27Management forecasts Q4 FY2019 net sales to range between ¥17.0 billion and ¥18.0 billion, supported by a pipeline of five new mobile titles including 'AFTERLOST'.
See it on page 9Operational efficiency gains, specifically through the streamlining of outsourcing and operational expenses, successfully offset revenue declines in legacy web-based games.
See it on page 7The company is diversifying beyond gaming by expanding its live entertainment ecosystem through the 'REALITY' VTuber app and its 'LIMIA' and 'ARINE' media platforms.
See it on page 21GREE’s financial results for the third quarter of fiscal year 2019 reflect a period of strategic transition, characterized by a shift toward overseas self-distribution and improved operational efficiency. The company reported net sales of ¥17.6 billion and an operating income of ¥1.6 billion, which surpassed internal forecasts. While overall net sales saw a slight year-over-year decline, operating income grew significantly compared to the previous quarter. This profitability was driven by a reduction in fixed costs, specifically through the streamlining of outsourcing and operational expenses, which offset a decline in legacy web-based games.
The geographic scope of the results highlights a successful push into international markets. The self-distribution of first-party intellectual property, notably Another Eden, saw a strong start in eight countries and regions. Additionally, global simultaneous collaboration events for DanMachi contributed to increased daily active users and revenue. The company’s mobile game segment remains the primary revenue driver, accounting for ¥13.65 billion of total sales, while the advertising and media segment contributed ¥3.99 billion.
Looking ahead to the fourth quarter of FY2019, the company forecasts net sales between ¥17.0 billion and ¥18.0 billion. This outlook is supported by a development pipeline of five mobile titles and the planned launch of AFTERLOST in the Shoumetsu Toshi series. Beyond gaming, the company is expanding its live entertainment ecosystem through the REALITY VTuber app and strengthening its media potential via its LIMIA and ARINE platforms. As of March 31, 2019, the company maintains a strong balance sheet with ¥86.3 billion in cash and equivalents and a consolidated headcount of 1,693 employees.
