FinancialGREE
FY2020 First Quarter Financial Results
30 Oct 201928 pages~9 min full read
GREE reported Q1 FY2020 net sales of ¥15.8 billion and an operating income of ¥1.2 billion, the latter of which exceeded internal forecasts.
See it on page 5Total costs were reduced by ¥1.5 billion quarter-on-quarter to ¥14.6 billion, primarily driven by lower advertising spend and decreased outsourcing.
See it on page 8The gaming segment remains the primary revenue driver, supported by stable performance from titles like Another Eden and SINoALICE and the October launch of DanMachi in 27 European territories.
See it on page 18The company maintains a strong financial position with ¥84.9 billion in cash and cash equivalents and a total net asset value of ¥111.8 billion.
See it on page 26GREE is diversifying its revenue streams through the REALITY virtual live distribution platform and advertising/media platforms LIMIA and aumo.
See it on page 28The development pipeline includes two upcoming third-party IP titles, with a strategic focus on transitioning to a global operator model across North America, Europe, and Mainland China.
See it on page 12The company workforce remained stable during the quarter, ending the period with 1,729 employees.
See it on page 27GREE’s financial results for the first quarter of fiscal year 2020 reflect a period of steady profitability driven by strategic cost management and the global expansion of its gaming portfolio. During this period, the company reported net sales of ¥15.8 billion and an operating income of ¥1.2 billion. While net sales saw a reactive decline following previous anniversary events, operating income surpassed internal forecasts. This stability was supported by a significant reduction in total costs, which fell by ¥1.5 billion quarter-on-quarter to ¥14.6 billion, primarily through lower advertising expenses and reduced outsourcing.
The gaming segment remains the primary revenue driver, characterized by the stable operation of existing titles such as Another Eden and SINoALICE through major storyline updates and IP collaborations. A key growth milestone was the October launch of DanMachi in 27 European countries and territories. The company is maintaining a robust development pipeline with two major third-party IP titles scheduled for release later in the fiscal year. Beyond gaming, GREE is diversifying through its Live Entertainment business, specifically expanding original programming for the REALITY virtual live distribution platform, and strengthening its advertising and media reach via platforms like LIMIA and aumo.
Geographically, the company is focused on transitioning from a domestic-centric model to a global operator, with active distribution agreements in North America, Europe, and Mainland China. Financial health remains strong, with cash and cash equivalents totaling ¥84.9 billion and a total net asset value of ¥111.8 billion. The workforce remained relatively stable at 1,729 employees. Moving forward, the strategic thesis emphasizes leveraging game engines and global IP to ensure firm profit margins across international markets.
