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Financial
FY2022 First Quarter Financial Results
GREE’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.
GREENov 2021
Financial
FY2023 Second Quarter Financial Results
GREE’s financial results for the second quarter of fiscal year 2023 reflect a period of strategic global expansion and aggressive investment in the Metaverse, despite a decline in overall profitability. The company reported net sales of ¥16.6 billion and an operating income of ¥1.7 billion. While operating income surpassed forecasts due to the sustained performance of the hit title Heaven Burns Red, the company recorded a net loss of ¥0.9 billion for the quarter, primarily driven by foreign exchange losses and valuation losses on investment securities. The Internet and Entertainment segment remains the primary revenue driver, bolstered by the success of Heaven Burns Red, which received multiple accolades in Google Play’s Best Games of 2022. To sustain growth, the company is executing a global rollout, specifically targeting Korean and traditional Chinese markets. Simultaneously, the Metaverse business, centered on the REALITY platform, demonstrated steady growth in overseas sales. GREE is prioritizing the expansion of REALITY’s communication functions and world-building features, such as the Tokyo Dome World collaboration, to energize its international user base. The Investment and Incubation segment manages total assets of ¥77.3 billion. Although asset revaluation led to a slight quarter-on-quarter decrease in total value, the company continues to see high long-term returns from its venture capital funds and startup investments. GREE’s cost structure showed a slight reduction in total costs to ¥14.8 billion, aided by lower variable expenses. Looking ahead, the company anticipates stable income but expects a year-on-year decline in total profit as it continues to pivot toward aggressive medium-to-long-term investments in the Metaverse and new intellectual property development.
GREEFeb 2023
Financial
FY2022 Third Quarter Financial Results
GREE’s financial results for the third quarter of fiscal year 2022 report net sales of ¥20.8 billion and an operating income of ¥3.6 billion. These figures represent a quarter-on-quarter increase driven primarily by the Internet and Entertainment segment, which overcame significant upfront investments in new titles to deliver ¥3.1 billion in operating income. The Investment and Incubation business also provided a stable contribution of ¥0.4 billion to the overall profit. The primary driver of growth during this period was the successful launch of Heaven Burns Red in February 2022, which achieved a number-one sales ranking. While the company engaged in aggressive promotional spending and experienced higher fixed costs due to office relocation, these were offset by strong game performance and a decrease in royalty-related variable costs. Beyond core gaming, the Metaverse business made progress through the REALITY platform by expanding global distribution and adding virtual "World" features. Additionally, the Advertising and Media segment saw a 70% increase in participating stores for its aumo My Business service. The Investment and Incubation segment reported total assets under management of ¥71.4 billion, with a direct investment balance of ¥45.8 billion. The company continues to see high unrealized value in its venture capital holdings across Japan and the United States. Looking ahead, the company expects continued growth in its Internet and Entertainment business for the remainder of the fiscal year, though it anticipates a year-on-year decline in investment-related gains compared to the exceptionally strong performance of the previous year. A dividend of ¥11 per share is planned, maintaining a policy of at least a 20% consolidated payout ratio.
GREEMay 2022
Financial
FY2022 Fourth Quarter Financial Results
Fiscal year 2022 concluded with net sales of ¥74.9 billion and operating income of ¥11.5 billion, representing year-over-year growth primarily fueled by the success of major titles like Heaven Burns Red. While the Game Business drove top-line performance, overall net income decreased to ¥10.1 billion as a result of lower investment-related gains compared to the prior year. The company maintains a robust financial foundation, ending the period with ¥116.7 billion in total assets and a net cash position of ¥46.6 billion, supported by a stable workforce of over 1,600 employees. Strategic priorities for the upcoming fiscal year emphasize global expansion and the diversification of digital services. The Metaverse segment is positioned for aggressive growth through the REALITY platform, which is transitioning into a corporate service provider via its "World" offerings. Simultaneously, the Commerce and DX segment is scaling its SaaS marketing capabilities, with the aumo My Business service now reaching over 30,000 participating locations. Although a short-term profit decline is anticipated in fiscal year 2023 following the peak performance of recent hit titles, the long-term objective remains a return on equity of 10% or higher. The Investment and Incubation segment continues to serve as a critical pillar of value, managing a portfolio of 28 venture capital funds and 34 startups with total assets under management reaching ¥71.6 billion. This segment provides high internal rates of return and a valuation of ¥31.4 billion in operational investment securities. By integrating these investment returns with global IP distribution in the Game and Anime sectors, the organization aims to achieve discontinuous growth and solidify its presence across the international digital entertainment and marketing landscapes.
GREEAug 2022