FY2022 3Q Financial Results Briefing

The briefing presents GREE, Inc.’s FY2022 third‑quarter financial performance and strategic outlook. Net sales reached ¥20.8 billion, operating income stood at ¥3.6 billion, and EBITDA was ¥3.8 billion, with the Internet and Entertainment Business contributing ¥3.1 billion of operating income. A key driver was the launch of “Heaven Burns Red” on February 10, which achieved multiple No. 1 sales rankings and generated significant revenue growth; aggressive advertising spending of approximately ¥900 million, nearly double the prior quarter, supported this success. Variable costs fell due to a favorable sales mix, while fixed costs rose slightly from one‑time office relocation expenses. The Investment and Incubation Business delivered a stable ¥0.4 billion operating income, with assets under management reaching ¥71.4 billion.

Geographically the results reflect Japan‑centric operations, with a growing global distribution effort in the Metaverse segment through the REALITY platform. The company projects continued growth for FY2022, estimating fourth‑quarter operating income of ¥2.5–¥3.0 billion for the Internet and Entertainment Business, contingent on new title performance. Dividend policy remains steady at ¥11 per share, targeting a 2 % dividend‑on‑DOE and a consolidated payout ratio of at least 20 %.

Methodologically, the briefing draws on quarterly financial statements and internal cost‑structure analysis. It highlights ongoing content releases (e.g., “Echoes of Mana”), planned annual launches of 2–3 in‑house titles, and expanding SaaS offerings such as “aumo My Business.” Investment performance metrics (IRR across phases) indicate alignment with benchmarks, while market‑related valuation adjustments have kept investment book values flat.