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.