FinancialGREE
FY2022 Third Quarter Financial Results
12 May 202226 pages~11 min full read
GREE reported Q3 FY2022 net sales of ¥20.8 billion and an operating income of ¥3.6 billion, driven by strong performance in the Internet and Entertainment segment.
See it on page 6The launch of 'Heaven Burns Red' in February 2022 was the primary growth driver, achieving a number-one sales ranking and offsetting high promotional and relocation costs.
See it on page 12The Internet and Entertainment segment generated ¥3.1 billion in operating income, while the Investment and Incubation business contributed a stable ¥0.4 billion.
See it on page 6The Investment and Incubation segment manages ¥71.4 billion in total assets, with a direct investment balance of ¥45.8 billion and significant unrealized value in venture holdings.
See it on page 19The 'aumo My Business' service within the Advertising and Media segment achieved a 70% increase in participating stores.
See it on page 17GREE plans a dividend of ¥11 per share, adhering to a policy of maintaining at least a 20% consolidated payout ratio.
See it on page 9While the company expects continued growth in its core Internet and Entertainment business, it anticipates a year-on-year decline in investment-related gains for the remainder of the fiscal year.
See it on page 9GREE’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.
