FY2020 2Q Financial Results Presentation

The presentation reports GREE Inc.’s second‑quarter 2020 financial performance, highlighting a net sales figure of ¥16.4 billion and operating income of ¥0.8 billion, surpassing forecasts. EBITDA reached ¥1.1 billion, while net income climbed to ¥2.6 billion largely due to a ¥3.0 billion gain from the sale of investment securities. Year‑over‑year and quarter‑on‑quarter profit growth is emphasized, with operating income projected for the third quarter between ¥0.5 billion and just under ¥1.0 billion.

Key business drivers include the successful launch of a third‑party distributed title in November, which boosted net sales and coin consumption. The first‑party IP “Another Eden” expanded overseas sales, achieving a 2.7‑fold increase from November to December across the United States, Europe, and Asia, supported by intensified global marketing. The live‑entertainment platform REALITY continues to grow, introducing low‑latency mode and partnering with Cluster Inc. for integrated avatar functionality.

Operationally, variable costs rose due to higher commission and advertising expenses, while fixed costs remained stable except for a one‑time depreciation increase from office relocations. The investment securities portfolio maintained a book value of ¥19 billion against an assessed value of ¥36 billion, confirming strong performance.

Strategically, GREE plans to release one additional title in FY20 and 4–6 new titles for FY21 onward, including collaborations with Visual Arts (Heaven Burns Red) and SYMPHOGEAR (Assault Lily: Last Bullet). Existing titles such as SINoALICE, DanMachi, SYMPHOGEAR, and Shoumetsu Toshi continue to receive fan‑community engagement campaigns. The company’s advertising and media initiatives aim to broaden user acquisition through targeted partnerships and campaigns.