FinancialGREE
FY2020 Third Quarter Financial Results
14 May 202030 pages~9 min full read
GREE achieved an operating income of ¥1.2 billion in Q3 FY2020, exceeding internal forecasts despite a decline in net sales to ¥15.4 billion.
See it on page 5Operating margins improved to 8.0% as total costs decreased by ¥1.4 billion quarter-over-quarter through optimized advertising and reduced variable expenses.
See it on page 6The company maintains a strong liquidity position with ¥86 billion in cash and cash equivalents, supporting a ¥10 per share dividend and a ¥2.5 billion stock repurchase program.
See it on page 10Gaming strategy is shifting toward first-party IP and global self-distribution, highlighted by the expansion of Another Eden to 71 countries and upcoming launches like Assault Lily: Last Bullet and Heaven Burns Red.
See it on page 16App game coin consumption saw a slight decline to ¥9.7 billion, and several third-party IP launches have been delayed from FY20 to FY21 or later.
See it on page 26A one-time restructuring loss is anticipated in Q4 as part of a strategic effort to ensure long-term earnings stability.
See it on page 2Diversification efforts continue outside of core gaming, with the REALITY virtual platform increasing interactive content and media platforms like LIMIA and aumo focusing on community engagement.
See it on page 22GREE’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.
