FinancialGREE
FY2021 Third Quarter Financial Results
10 May 202126 pages~9 min full read
GREE reported Q3 FY2021 net sales of ¥13.9 billion and an operating income of ¥1.7 billion, the latter representing a ¥1.2 billion quarter-on-quarter increase driven by the launch of 'Assault Lily: Last Bullet'.
Net income reached ¥5.1 billion for the quarter, significantly bolstered by gains from the company's investment fund operations.
The company is prioritizing shareholder returns through a ¥12 billion stock repurchase program and a planned dividend of ¥11 per share, supported by a cash position of ¥94 billion.
Operational efficiency has improved through a reduction in consolidated headcount to 1,589 and a strategic decrease in advertising and variable costs.
GREE is diversifying its revenue beyond core gaming titles like 'Another Eden' and 'SINoALICE' by expanding its Live Entertainment segment, specifically the 'REALITY' virtual distribution app.
The company’s 2021 development pipeline includes the upcoming titles 'Heaven Burns Red' and a game based on the 'That Time I Got Reincarnated as a Slime' IP.
GREE’s financial results for the third quarter of fiscal year 2021 reflect a period of significant profitability growth driven by new product launches and rigorous cost management. The company reported net sales of ¥13.9 billion and an operating income of ¥1.7 billion, which surpassed internal forecasts. Net income reached ¥5.1 billion, bolstered by gains from investment fund operations. This performance represents a substantial quarter-on-quarter increase in operating income of ¥1.2 billion, attributed to the successful January 2021 launch of Assault Lily: Last Bullet and a strategic reduction in advertising and variable costs.
The operational scope centers on the Japanese mobile gaming market with expanding global distribution across North America, Europe, and Asia. The game business remains the primary revenue driver, supported by mainstay titles like Another Eden and SINoALICE. Beyond core gaming, the company is diversifying through its Live Entertainment segment, specifically the REALITY virtual distribution app, and its advertising and media platforms, aumo and LIMIA. The development pipeline remains active with multiple titles scheduled for 2021 release, including Heaven Burns Red and a third-party distributed title based on the That Time I Got Reincarnated as a Slime IP.
Financial stability is underscored by a robust balance sheet featuring ¥94 billion in cash and cash equivalents. The company has demonstrated a commitment to shareholder returns through a ¥12 billion stock repurchase program and a planned dividend of ¥11 per share. Despite a slight year-on-year decline in total net sales, the transition toward higher-margin internal IP and improved operational efficiency—evidenced by a reduction in consolidated headcount to 1,589—has strengthened the overall profit structure. Management maintains a positive outlook for the remainder of the fiscal year, expecting continued growth in operating and net income.
