FinancialGREE
FY2021 Second Quarter Financial Results
1 Feb 202127 pages~9 min full read
GREE reported Q2 FY2021 net sales of ¥13.7 billion and operating income of ¥0.6 billion, representing declines from the previous quarter's ¥15.2 billion and ¥1.6 billion respectively.
See it on page 6Net income rose to ¥3.0 billion, driven primarily by gains from investment fund operations rather than core gaming revenue.
See it on page 2The company maintains a strong financial position with ¥89.1 billion in cash and cash equivalents, supporting a ¥4.1 billion stock repurchase program that acquired 7.14 million shares as of January 2021.
See it on page 9International expansion efforts included the November 2020 launch of Another Eden in China via Bilibili and TapTap, alongside the January 2021 release of Assault Lily: Last Bullet.
See it on page 16GREE is shifting its gaming strategy toward a consistent pipeline of two to three in-house titles annually, with Heaven Burns Red identified as a key upcoming project.
See it on page 15The live entertainment segment, anchored by the award-winning REALITY virtual distribution app, continues to serve as a strategic growth pillar alongside media platforms like aumo and LIMIA.
See it on page 19GREE’s financial results for the second quarter of fiscal year 2021 reflect a period of strategic international expansion and new title launches amidst a slight contraction in overall revenue. Net sales reached ¥13.7 billion, representing a decrease from the ¥15.2 billion recorded in the previous quarter. Operating income stood at ¥0.6 billion, down from ¥1.6 billion in the first quarter, primarily due to a seasonal decline in game business sales and increased fixed costs. Despite these declines, net income rose significantly to ¥3.0 billion, bolstered by profits from investment fund operations.
The operational focus centered on the global distribution of key intellectual properties and the growth of the live entertainment segment. Major milestones included the January 2021 release of Assault Lily: Last Bullet and the November 2020 launch of Another Eden in China through partnerships with platforms like Bilibili and TapTap. While coin consumption in established titles like SINoALICE saw a decline following previous peaks, the company maintained a robust development pipeline with plans to release two to three in-house titles annually, including upcoming projects like Heaven Burns Red.
Beyond core gaming, the live entertainment segment expanded through the REALITY virtual distribution app, which received recognition in the Google Play Best of 2020 awards. The company also utilized its advertising and media platforms, such as aumo and LIMIA, to capitalize on domestic trends like the GoTo travel campaign. To enhance shareholder value, GREE implemented a significant stock repurchase program, acquiring approximately 7.14 million shares for ¥4.1 billion as of January 2021. The company maintains a strong liquidity position with ¥89.1 billion in cash and cash equivalents, supporting its outlook for firm profits driven by global operations.
