FY2022 Second Quarter Financial Results Briefing

The briefing presents GREE Inc.’s financial performance for FY2022 second quarter, highlighting a net sales figure of ¥19.5 billion and operating income of ¥2.5 billion, both up markedly from the prior quarter largely due to a new title launch. EBITDA reached ¥2.7 billion, with the Internet and Entertainment Business contributing the full operating income margin. The company attributes growth to the strong start of “That Time I Got Reincarnated as Slime: ISEKAI Memories,” which achieved over two million downloads within two months and secured a top‑four sales ranking globally. Forecasts for the third quarter project operating income between ¥1.5 billion and just under ¥2 billion, driven by anticipated new releases.

Operationally, GREE expanded its Metaverse platform REALITY, adding multilingual support and interactive features for up to eight avatars. The Advertising and Media Business introduced a new SaaS marketing tool, “aumo My Business,” targeting physical stores, and partnered with regional tourism bodies to promote local content. Investment activities remained steady; the LP fund and CVC arms invested in domestic and international venture funds, with IRR figures of 17 % (growth phase) and 22 % (exit phase), outperforming domestic benchmarks.

Cost analysis shows advertising expenses rose by ¥200 million, commission fees increased with sales, and fixed costs climbed due to bonus provisions. Total operating costs reached ¥17 billion, up ¥4.9 billion quarter‑on‑quarter. Share repurchase and cancellation activities reduced the share count by 35 million shares, lowering outstanding equity. Overall, GREE’s strategy focuses on sustaining game revenue growth, expanding metaverse and SaaS offerings, and maintaining a robust investment portfolio.