FY2022 1Q Financial Results Briefing

GREE Inc. reported FY2022 first‑quarter results with net sales of ¥13.7 billion and operating income of ¥1.6 billion, both figures reflecting a shift to a two‑segment reporting structure: Internet and Entertainment Business (games, metaverse, advertising) and Investment and Incubation Business. Operating income for the Internet segment reached ¥0.5 billion, surpassing forecasts, while the Investment segment contributed a significant profit margin that offset declines in game sales following anniversary events for flagship titles such as Another Eden and SINoALICE. Total costs amounted to ¥12.1 billion, down ¥0.6 billion quarter‑on‑quarter, with advertising expenses rising by ¥0.30 billion due to metaverse promotion and variable costs falling as sales dipped.

The company highlighted new game releases, notably “That Time I Got Reincarnated as a Slime,” which entered the top‑10 app sales ranking, and pre‑registrations for “Heaven Burns Red.” Metaverse activity expanded the REALITY platform’s content and global user base, while advertising and media collaborations (e.g., aumo, LIMIA) continued to strengthen community engagement. Investment activities were detailed: assets under management stood at ¥43 billion, with a valuation of invested startups around ¥67 billion; direct investments totaled ¥31.1 billion, reflecting unrealized gains that roughly doubled the invested capital.

GREE announced a stock‑repurchase program of up to 35 million shares (¥35 billion) to enhance shareholder returns and drive ROE toward 10%+. The outlook for Q2 anticipates operating income in the several‑hundred‑million‑yen range, tempered by higher outsourcing and advertising costs linked to new titles and metaverse growth.