FinancialGREE Inc.
FY2020 2Q Presentation: Financial Results
1 Sept 20203 pages~6 min full read
GREE Inc. reported Q2 FY2020 net sales of 16.4 billion JPY and operating income of 0.8 billion JPY, with net income reaching 2.6 billion JPY due to a 3.0 billion JPY gain from investment securities.
The company maintains an investment portfolio valued at 36 billion JPY, significantly exceeding its 19 billion JPY book value.
Overseas sales for the first-party IP 'Another Eden' grew 2.7 times between November and December 2019 following intensified marketing in North America, Europe, and Asia.
The game development pipeline includes one title scheduled for the remainder of FY2020 and four to six titles for FY2021 and beyond, notably 'Heaven Burns Red' and 'Assault Lily: Last Bullet'.
Operating income for Q3 is projected to remain stable between 0.5 billion and 1.0 billion JPY, supported by existing global titles and continued investment in growth areas.
Strategic expansion in live entertainment includes functional enhancements to the 'REALITY' virtual platform and a capital tie-up with Cluster Inc. to integrate avatar functionality.
GREE Inc. reported solid financial performance for the second quarter of fiscal year 2020, characterized by net sales of 16.4 billion JPY and operating income of 0.8 billion JPY. While operating income saw a slight decline from the previous quarter due to increased variable costs—specifically royalties and advertising for new launches—net income reached 2.6 billion JPY. This substantial growth was primarily driven by a 3.0 billion JPY gain from the sale of investment securities, reflecting a strong investment portfolio valued at 36 billion JPY against a book value of 19 billion JPY.
The game business remains a primary earnings pillar, bolstered by the successful global launch of a third-party distributed title in November 2019 and the expansion of the first-party IP Another Eden. Overseas sales for Another Eden grew 2.7 times between November and December following intensified marketing efforts across North America, Europe, and Asia. The development pipeline remains active with one title scheduled for the remainder of FY2020 and four to six titles in development for FY2021 and beyond, including high-profile projects such as Heaven Burns Red and Assault Lily: Last Bullet.
Beyond traditional gaming, there is a strategic focus on the live entertainment and advertising segments. The virtual distribution platform REALITY underwent functional enhancements, including a new low-latency mode to improve transmission quality. Furthermore, a capital and operational tie-up with Cluster Inc. aims to integrate avatar functionality across virtual event platforms. Looking ahead to the third quarter, operating income is projected to remain stable between 0.5 billion and 1.0 billion JPY, supported by the steady global operation of existing titles and continued investment in new growth areas.
