FinancialGREE
FY2022 First Quarter Financial Results
1 Nov 202127 pages~11 min full read
GREE reported Q1 FY2022 net sales of ¥13.7 billion and operating income of ¥1.6 billion, reflecting a slight decline compared to previous periods.
See it on page 5The Investment and Incubation Business generated ¥1.1 billion in operating income, with assets under management reaching approximately ¥67.0 billion.
See it on page 7The Internet and Entertainment segment experienced a revenue dip due to the conclusion of anniversary events for flagship titles like Another Eden and SINoALICE.
See it on page 7GREE maintains a strong financial position with total assets of ¥141.8 billion, including ¥91.5 billion in cash.
See it on page 25The company is prioritizing growth in its Metaverse Business through global expansion and increased advertising investment for the REALITY app.
See it on page 16Strategic game development continues with the launch of That Time I Got Reincarnated as a Slime: ISEKAI Memories and the initiation of pre-registration for Heaven Burns Red.
See it on page 12Management authorized a stock repurchase program of up to 35 million shares as part of its commitment to shareholder returns.
See it on page 9GREE’s financial results for the first quarter of fiscal year 2022, ending September 30, 2021, reflect a period of strategic transition and heavy investment in new growth pillars. The company reported net sales of ¥13.7 billion and an operating income of ¥1.6 billion. While these figures represent a slight decline compared to the previous quarter and the same period last year, the results were bolstered by the Investment and Incubation Business, which offset a temporary dip in the Internet and Entertainment segment.
The Internet and Entertainment Business saw a decrease in revenue following the conclusion of major anniversary events for flagship titles like Another Eden and SINoALICE. However, the company made significant progress in its game pipeline, launching That Time I Got Reincarnated as a Slime: ISEKAI Memories and initiating pre-registration for Heaven Burns Red. Simultaneously, the company is aggressively expanding its Metaverse Business through the REALITY app, which achieved global distribution and saw increased advertising investment to grow its international user base.
The Investment and Incubation Business remains a critical earnings pillar, with assets under management reaching approximately ¥67.0 billion. This segment contributed ¥1.1 billion in operating income during the quarter, driven by revaluations of startup investments and venture capital fund performance. The company’s total assets stood at ¥141.8 billion, supported by a strong cash position of ¥91.5 billion.
Looking ahead, the company aims for sales and profit growth through the stable operation of existing games and the release of two to three in-house developed titles annually. Management also emphasized shareholder returns, executing a stock repurchase program of up to 35 million shares. The overall strategy focuses on strengthening the three core pillars of gaming, the metaverse, and investment to ensure long-term stability and growth.
