FinancialGREE
Fiscal Year 2019 Fourth Quarter Financial Results Briefing
1 Jan 20195 pages~10 min full read
GREE, Inc. closed fiscal year 2019 with ¥70.9 billion in net sales and ¥5.5 billion in operating income, with Q4 results meeting forecasts at ¥17.4 billion and ¥1.3 billion respectively.
See it on page 1The company is shifting its gaming strategy toward self-distribution and first-party intellectual property to improve margins while expanding onto multiplatform environments like Nintendo Switch and Facebook Games.
See it on page 4Future growth is anchored by the REALITY platform, a VTuber distribution service, which is receiving aggressive investment in production and platform functionality.
See it on page 5The company has established a new shareholder return policy based on a 2% Dividend on Equity (DOE) ratio.
See it on page 2Upcoming product pipelines include two new title launches for fiscal year 2020, with four to six additional projects currently in development for 2021 and beyond.
See it on page 4Financial performance in the reported period was bolstered by anniversary events for key titles, specifically SINoALICE, Another Eden, and SYMPHOGEAR.
See it on page 2While the advertising and media segment is currently in an investment phase, the company expects losses to narrow as its vertical media portfolios continue to expand.
See it on page 4GREE, Inc. reported its financial results for the fiscal year ending June 2019, achieving net sales of ¥70.9 billion and an operating income of ¥5.5 billion. The fourth quarter performed in line with forecasts, generating ¥17.4 billion in net sales and ¥1.3 billion in operating income. This performance was driven by the sustained success of existing game titles, particularly during anniversary events for SINoALICE, Another Eden, and SYMPHOGEAR, alongside strategic expansions into overseas markets.
The strategic framework for the period focused on three core pillars: gaming, live entertainment, and advertising and media. In the gaming segment, the company utilized an "engine, IP, global" strategy to improve profitability. This involved transitioning toward self-distribution and first-party IPs to capture higher margins, while expanding onto multiplatform environments including Nintendo Switch and Facebook Games. Geographically, the company successfully launched titles in North America, Europe, and parts of Asia, with plans to enter the Chinese market pending regulatory approval.
Looking toward fiscal year 2020, the company is prioritizing long-term operational stability and aggressive investment in emerging sectors. The live entertainment division is centered on the REALITY platform, a VTuber distribution service, where investments will focus on production, platform functionality, and business solutions. While the advertising and media segment remains in an upfront investment phase, losses are expected to narrow as vertical media portfolios expand. For the upcoming fiscal year, the company plans to launch two new titles and has four to six additional projects in development for 2021 and beyond. To ensure shareholder returns, a new dividend policy based on a 2% Dividend on Equity (DOE) ratio has been established.
