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Financial
FY2019 Second Quarter Financial Results
GREE reported second-quarter net sales of ¥17.7 billion and operating income of ¥1.0 billion for the fiscal year ending June 2019. While these figures represent a year-over-year decline in profitability, they align with internal forecasts and reflect a deliberate period of reinvestment. The company is currently prioritizing long-term growth through increased fixed costs associated with full-scale development for new titles and the expansion of overseas distribution for core intellectual properties such as DanMachi and Another Eden. This strategic shift includes a transition toward self-distribution in international markets and the diversification of the portfolio across multiple platforms, exemplified by the release of Fishing Star on the Nintendo Switch. The financial landscape is characterized by a robust net cash position of ¥86.9 billion, providing the necessary liquidity to fund the development of the REALITY Avatar livestreaming platform and the growth of the award-winning media app aumo. Despite a projected dip in third-quarter operating income to between ¥0.3 and ¥0.8 billion, the organization is streamlining operations by withdrawing from unprofitable titles and optimizing its workforce. As of December 2018, the group employed 1,701 personnel, with the vast majority concentrated in the Game and Entertainment segment to support its multiplatform and global expansion initiatives. Ultimately, the current fiscal performance underscores a transition from domestic mobile dominance toward a global, multi-faceted entertainment model. By leveraging first-party IPs and expanding into the VTuber and advertising media sectors, the strategy aims to stabilize future earnings through a broader geographic and platform reach. Although development investments and overseas marketing costs currently weigh on margins, the focus remains on strengthening media potential and establishing a sustainable international presence across Asia and other global markets.
GREEFeb 2019
Financial
FY2019 First Quarter Financial Results
The financial results for the first quarter of fiscal year 2019 detail a period of strategic transition characterized by steady operating income despite a year-over-year decline in net sales. Net sales reached ¥18.2 billion, a decrease from ¥21.6 billion in the same period the previous year, while operating income remained stable at ¥1.6 billion. This stability was achieved by offsetting declining revenue with a reduction in variable costs, specifically through more efficient advertising spend and lower commission fees. The operating income margin improved slightly to 8.9% on a quarter-over-quarter basis. The business strategy focuses on three primary pillars: mobile game engines, intellectual property (IP) development, and global expansion. Key operational highlights include the release of Wild Arms: Million Memories and the expansion of Danmachi: Memoria Freese into South Korea and Taiwan. The company is also diversifying its platform reach by developing titles for the Nintendo Switch and the LINE QUICK GAME platform. Furthermore, there is a significant push into the live entertainment sector with the launch of REALITY, a dedicated livestreaming platform for VTubers, supported by joint ventures with King Records and Idea Factory. Geographically, the focus remains on the Japanese market while aggressively pursuing growth in North America, Europe, and Greater China through both self-distribution and partnerships. For the second quarter of fiscal 2019, the earnings forecast anticipates net sales between ¥17 billion and ¥18 billion, with operating income projected between ¥1 billion and ¥1.5 billion. This outlook reflects the expected performance of existing titles and the continued rollout of newly developed overseas projects. The consolidated headcount grew to 1,604 employees by the end of the first quarter, reflecting ongoing investment in development and new business segments.
GREE Inc.Oct 2018
Financial
FY2019 Fourth Quarter Financial Results
Fiscal year 2019 concluded with net sales of ¥70.9 billion and operating income of ¥5.5 billion, driven primarily by the successful transition to a long-term operating system and the aggressive expansion of overseas distribution. Performance remained steady through the fourth quarter, yielding ¥17.4 billion in net sales as global partnerships and self-distribution efforts bolstered titles such as Another Eden and DanMachi. While domestic coin consumption experienced a slight year-over-year decline to 10.9 billion, the core games business maintained stability through large-scale anniversary events and strategic multi-platform expansions onto the Nintendo Switch and Facebook Instant Games. The strategic framework for future growth rests on three pillars: stabilizing the games division as a financial foundation, scaling advertising and media through vertical portfolios, and investing heavily in the REALITY VTuber platform. Global reach has become a central priority, evidenced by Another Eden’s expansion into 34 regions and SINoALICE securing over one million pre-registrations across 150 countries. These international efforts are complemented by a focus on the Chinese market and the development of two major third-party IP titles scheduled for release in the coming fiscal year. Financial health remains robust, characterized by a strong cash position of ¥84.5 billion and a successful reduction in total costs to ¥16.07 billion. Although total net assets saw a minor contraction, the overall trajectory emphasizes a shift toward high-growth emerging sectors like virtual live streaming and community-driven media. By leveraging strategic alliances and community engagement, the objective is to offset fluctuations in traditional mobile gaming consumption with diversified revenue streams across the global digital entertainment landscape.
GREEAug 2019
Financial
FY2020 Third Quarter Financial Results
GREE’s financial results for the third quarter of fiscal year 2020 reflect a strategic shift toward first-party intellectual property (IP) and global expansion. Net sales reached ¥15.4 billion, a decrease from the previous year, yet operating income rose to ¥1.2 billion, surpassing internal forecasts. This profitability was driven by a significant reduction in total costs, which fell by ¥1.4 billion quarter-over-quarter due to more efficient advertising spend and lower variable costs. The operating income margin subsequently improved to 8.0%. The gaming segment remains the primary earnings pillar, characterized by strong overseas performance from titles like Another Eden, which expanded its distribution to 71 countries and territories. While coin consumption in app games saw a slight decline to ¥9.7 billion, the company is preparing for future growth through the global self-distribution of SINoALICE and the development of new titles such as Assault Lily: Last Bullet and Heaven Burns Red. However, some third-party IP launches originally slated for FY20 have been postponed to FY21 or later. Beyond core gaming, the company reported progress in its Live Entertainment and Advertising and Media segments. The REALITY virtual live distribution platform expanded its original content and interactive events, while media platforms like LIMIA and aumo focused on community engagement and restaurant support initiatives. Looking ahead, the company anticipates a potential one-time loss in the fourth quarter due to restructuring costs aimed at long-term earnings stability. Despite these adjustments, the financial position remains robust with ¥86 billion in cash and cash equivalents. Shareholder returns continue to be a priority, evidenced by a planned ¥10 per share dividend and an ongoing ¥2.5 billion stock repurchase program.
GREEMay 2020