FY2021 Second Quarter Financial Results

GREE’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.