Financial

FY2020 Second Quarter Financial Results

3 February 202027 pages1,741 words

Summary

GREE’s financial results for the second quarter of fiscal year 2020 reflect a period of strategic global expansion and significant investment activity. The company reported net sales of ¥16.4 billion and an operating income of ¥0.8 billion, which surpassed internal forecasts despite a year-over-year decline. A notable highlight was the surge in net income to ¥2.6 billion, driven primarily by approximately ¥3.0 billion in gains from the sale of investment securities. This financial performance underscores a transition toward global operations and a diversified revenue model. The operational focus centered on the game business, characterized by the smooth launch of third-party distributed titles and the successful international marketing of first-party intellectual property, specifically Another Eden. Overseas sales for this title grew 2.7 times following targeted campaigns in North America, Europe, and Asia. While net sales rose quarter-over-quarter due to these releases, operating income faced pressure from increased variable costs, including higher royalty payments and advertising expenses associated with year-end seasonal campaigns. Beyond core gaming, the company made progress in its live entertainment and media segments. The REALITY virtual distribution platform saw functional enhancements, such as low-latency modes and a capital tie-up with Cluster, Inc. to integrate avatar functionality. Looking ahead, the pipeline remains robust with several titles in development, including collaborations with high-profile partners like Key and Bushiroad. The company maintains a firm outlook based on the continued global scaling of its game portfolio and the strengthening of its virtual platform ecosystem.

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FY2020 Second Quarter Financial Results

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