FY2020 Third Quarter Financial Results

GREE’s financial results for the third quarter of fiscal year 2020 reflect a strategic shift toward first-party intellectual property (IP) and global expansion. Net sales reached ¥15.4 billion, a decrease from the previous year, yet operating income rose to ¥1.2 billion, surpassing internal forecasts. This profitability was driven by a significant reduction in total costs, which fell by ¥1.4 billion quarter-over-quarter due to more efficient advertising spend and lower variable costs. The operating income margin subsequently improved to 8.0%.

The gaming segment remains the primary earnings pillar, characterized by strong overseas performance from titles like Another Eden, which expanded its distribution to 71 countries and territories. While coin consumption in app games saw a slight decline to ¥9.7 billion, the company is preparing for future growth through the global self-distribution of SINoALICE and the development of new titles such as Assault Lily: Last Bullet and Heaven Burns Red. However, some third-party IP launches originally slated for FY20 have been postponed to FY21 or later.

Beyond core gaming, the company reported progress in its Live Entertainment and Advertising and Media segments. The REALITY virtual live distribution platform expanded its original content and interactive events, while media platforms like LIMIA and aumo focused on community engagement and restaurant support initiatives.

Looking ahead, the company anticipates a potential one-time loss in the fourth quarter due to restructuring costs aimed at long-term earnings stability. Despite these adjustments, the financial position remains robust with ¥86 billion in cash and cash equivalents. Shareholder returns continue to be a priority, evidenced by a planned ¥10 per share dividend and an ongoing ¥2.5 billion stock repurchase program.