FinancialGREE
Fiscal Year 2020 First Quarter Financial Results: Presentation Transcript
1 Jan 20203 pages~7 min full read
GREE reported Q1 FY2020 net sales of 15.8 billion yen and an operating income of 1.2 billion yen, significantly exceeding initial forecasts of 100 to 200 million yen.
See it on page 2Operating costs were reduced by 1.5 billion yen through decreased advertising expenditure and the strategic transfer of game operations to improve profitability.
See it on page 2App-based coin consumption remained robust at approximately 10 billion coins for the quarter, offsetting the natural decline in the browser game segment.
See it on page 3The company expanded its global footprint by launching the title DanMachi across 27 European countries as part of a move toward self-sustained international operations.
See it on page 3The development pipeline includes two releases scheduled for the remainder of FY2020 and four to six additional titles currently in development for FY2021.
See it on page 3GREE realized extraordinary income from the listing of Bushiroad, highlighting the increasing valuation of its investment securities portfolio.
See it on page 2Management projects a Q2 FY2020 operating income of 0.5 billion yen, reflecting planned increases in advertising investment to support long-term title momentum.
See it on page 2GREE’s financial results for the first quarter of fiscal year 2020 demonstrate a period of strategic stabilization and global expansion. The company reported net sales of 15.8 billion yen and an operating income of 1.2 billion yen, which significantly outperformed initial forecasts of approximately 100 to 200 million yen. This financial performance was driven by the resilience of major game titles following intensive anniversary events and a disciplined approach to cost management. Total costs were reduced by 1.5 billion yen through lower advertising spend and the strategic transfer of certain game operations to improve overall profitability.
The game business remains the primary driver of growth, characterized by a shift toward global distribution and cross-media integration. A key highlight was the European launch of DanMachi across 27 countries, marking a move toward self-sustained global operations. The company is also leveraging anime tie-ins for titles like SINoALICE and SYMPHOGEAR to maintain user engagement. Looking ahead, the development pipeline includes two planned releases for the remainder of fiscal year 2020 and an additional four to six titles in development for fiscal year 2021. While browser games continue a natural decline, app-based coin consumption remains robust at approximately 10 billion coins for the quarter.
Beyond core gaming, there is a continued focus on diversifying into live entertainment and media. The REALITY virtual platform is being expanded through new program formats and functional app updates to grow the user community. Financially, the company realized extraordinary income from the listing of Bushiroad, reflecting an increasing valuation of its investment securities. For the second quarter, leadership expects a firm operating income of approximately 0.5 billion yen, accounting for increased advertising investments intended to activate promising titles and sustain long-term momentum across its three primary business segments.
