Financial

FY2022 Second Quarter Financial Results

7 February 202227 pages2,450 words

Summary

GREE’s financial results for the second quarter of fiscal year 2022 reflect significant growth driven by the successful launch of new intellectual property and strategic expansions in the metaverse and SaaS sectors. The company reported net sales of ¥19.5 billion and an operating income of ¥2.5 billion, representing a substantial quarter-over-quarter increase. This performance was primarily propelled by the Internet and Entertainment Business, specifically the strong debut of That Time I Got Reincarnated as a Slime: ISEKAI Memories, which achieved over 2 million downloads within two months of its October 2021 release. The report highlights a diversified business model across four main pillars: Game, Metaverse, Advertising and Media, and Investment and Incubation. In the Metaverse segment, the REALITY platform expanded its global footprint by supporting 12 languages and introducing an eight-person avatar video chat feature. The Advertising and Media segment marked a strategic shift into the SaaS market with the launch of aumo My Business, a marketing tool for physical stores that quickly surpassed 10,000 participating locations. Meanwhile, the Investment and Incubation arm maintained a stable asset base with total assets under management of ¥66.9 billion, focusing on venture capital funds in Japan and the United States. Financially, the period was characterized by increased variable costs, such as commission fees and advertising, which rose in tandem with higher game sales. The company also prioritized shareholder returns, completing a ¥32.7 billion stock repurchase program and cancelling approximately 25.8% of its issued shares. Looking forward, the company aims for sustained growth through a pipeline of two to three in-house game releases per year and the continued global expansion of its metaverse and media platforms.

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