FY2021 Fourth Quarter Financial Results Briefing

GREE Inc. reported FY2021 full‑year net sales of ¥56.8 billion, operating income of ¥5.4 billion and EBITDA of ¥6.2 billion, marking year‑on‑year growth in operating income despite a decline in net sales driven by the transfer of its fashion commerce unit and weaker media performance amid COVID‑19. Net income rose to ¥13.5 billion, largely supported by gains from investment‑fund operations and the sale of securities, including an IPO. In Q4, net sales reached ¥13.9 billion and operating income hit ¥1.5 billion, surpassing forecasts; net income for the quarter was ¥4.2 billion, buoyed by investment‑security gains and deferred tax recoveries.

The company’s strategic focus centers on three pillars: games, the newly renamed Metaverse business (formerly live entertainment), and advertising/media. Game operations remain stable with multiple new titles slated for release, while global distribution expanded to 72 countries. The Metaverse segment will receive aggressive promotion and development investment, targeting a user base expansion in the U.S. and worldwide; FY22 may see short‑term operating losses of several hundred million yen from upfront promotion costs. Advertising/media profits will be reinvested to sustain growth.

GREE’s investment and incubation arm is reclassified as an operating business, aiming for a >10 % return and contributing to long‑term profitability. The company targets an ROE of 10 % or higher, supported by capital efficiency improvements and continued investment in its three growth engines.