FinancialGREE
FY2021 First Quarter Financial Results
27 Oct 202027 pages~9 min full read
GREE returned to profitability in Q1 FY2021 with ¥15.2 billion in net sales and ¥1.6 billion in operating income, exceeding internal forecasts.
Total costs were reduced by 9.4% to ¥13.6 billion, driven by business restructuring and lower advertising expenses following the conclusion of major anniversary events.
The company launched SINoALICE globally across 139 countries on July 1, 2020, as part of a strategic focus on international expansion.
GREE initiated a stock repurchase program of up to 20 million shares, valued at approximately ¥12.0 billion, to be completed by September 2021.
The company expanded its non-gaming portfolio, with the aumo advertising and media platform surpassing 10 million monthly users.
Future growth is anchored by a pipeline of two to three in-house titles annually, including upcoming releases such as Heaven Burns Red and a Knights of Sidonia game.
GREE’s financial results for the first quarter of fiscal year 2021, ending September 30, 2020, indicate a period of significant profitability driven by global expansion and optimized cost structures. The company reported net sales of ¥15.2 billion and an operating income of ¥1.6 billion, which surpassed internal forecasts. This financial recovery follows a loss in the previous quarter and was supported by a 9.4% reduction in total costs, falling to ¥13.6 billion. Key drivers for this improvement included a decrease in fixed costs due to business restructuring and lower advertising expenses following the conclusion of major anniversary events.
The operational focus centered on the "Game engine, IP, and global" strategy. A primary highlight was the July 1 global launch of SINoALICE across 139 countries and territories, which significantly boosted overseas earning potential. The company also made strategic inroads into the Chinese market with the release of DanMachi in late September and preparations for the November launch of Another Eden. Beyond gaming, the company expanded its Live Entertainment segment through the REALITY virtual distribution app and strengthened its advertising and media reach, with the aumo platform exceeding 10 million monthly users.
Looking ahead, the company maintains a robust development pipeline, planning to release two to three in-house titles annually, including upcoming projects like Heaven Burns Red and a Knights of Sidonia game. To enhance shareholder value, the company announced a significant stock repurchase program of up to 20 million shares, valued at approximately ¥12.0 billion, to be executed through September 2021. The overall outlook remains firm, predicated on the continued stabilization of coin consumption in existing titles and the scaling of global operations.
