FinancialGREE Inc.
FY2020 Fourth Quarter Financial Results Briefing
1 Jan 20204 pages~8 min full read
GREE reported FY2020 net sales of ¥62.7 billion and an operating income of ¥3.2 billion, with a stable underlying quarterly profit base of ¥0.8 billion after adjusting for one-time restructuring costs.
The game segment is the primary revenue driver, with growth fueled by the international performance of 'Another Eden' and the July 2020 global launch of 'SINoALICE' across 139 countries.
Management projects a significant rebound in the game segment for Q1 FY2021, forecasting operating income to exceed ¥1 billion.
Future growth strategy includes expanding into the Chinese market through distribution partnerships with companies such as bilibili.
The company is prioritizing shareholder returns through a ¥2.5 billion stock repurchase program and a commitment to a 20% consolidated dividend payout ratio.
The advertising and media segment is undergoing restructuring to return to profitability following COVID-19-related headwinds, while the live entertainment segment continues to invest in the REALITY platform.
GREE, Inc. reported its financial results for the fiscal year ending June 2020, highlighting a period of strategic restructuring and global expansion. Full-year net sales reached ¥62.7 billion with an operating income of ¥3.2 billion. While the fourth quarter saw a slight operating loss of ¥0.07 billion, this was primarily attributed to ¥0.83 billion in one-time restructuring costs, including office consolidations and employee work-from-home benefits. Adjusted for these factors, the profit generation base remained stable at approximately ¥0.8 billion for the quarter.
The company’s operations are centered on three pillars: games, live entertainment, and advertising and media. The game business remains the primary driver, focusing on long-term title management and global distribution. Significant growth was noted in overseas sales, supported by the expansion of titles like Another Eden and the successful July 2020 launch of SINoALICE in 139 countries. Future growth is anticipated through a robust pipeline of new titles and a strategic push into the Chinese market via partnerships with local distributors such as bilibili.
The live entertainment segment continues to invest in the REALITY platform, focusing on both consumer functionality and B2B support for virtual events. Meanwhile, the advertising and media business faced headwinds due to COVID-19, leading to a focus on making the segment leaner and more vertically integrated.
Looking toward FY2021, the strategy emphasizes aggressive investment across all three pillars. Management expects the media business to return to profitability through restructuring, while the game segment is projected to see an immediate boost in operating income to over ¥1 billion in the first quarter. Shareholder returns remain a priority, evidenced by a ¥2.5 billion stock repurchase program and a commitment to a 20% consolidated dividend payout ratio.
