FinancialGREE
FY2022 Fourth Quarter Financial Results
4 Aug 202236 pages~16 min full read
FY2022 concluded with ¥74.9 billion in net sales and ¥11.5 billion in operating income, driven largely by the performance of the title Heaven Burns Red.
Net income fell to ¥10.1 billion in FY2022 due to a year-over-year decline in investment-related gains, despite strong top-line growth in the Game Business.
The company holds a strong financial position with ¥116.7 billion in total assets, a net cash position of ¥46.6 billion, and a workforce of over 1,600 employees.
The Investment and Incubation segment manages ¥71.6 billion in assets across 28 venture capital funds and 34 startups, holding ¥31.4 billion in operational investment securities.
The REALITY platform is pivoting toward corporate services via its 'World' offerings, while the aumo My Business SaaS service has expanded to over 30,000 locations.
Management anticipates a short-term profit decline in FY2023 following the peak performance of recent hit titles, but maintains a long-term target of 10% return on equity.
Fiscal year 2022 concluded with net sales of ¥74.9 billion and operating income of ¥11.5 billion, representing year-over-year growth primarily fueled by the success of major titles like Heaven Burns Red. While the Game Business drove top-line performance, overall net income decreased to ¥10.1 billion as a result of lower investment-related gains compared to the prior year. The company maintains a robust financial foundation, ending the period with ¥116.7 billion in total assets and a net cash position of ¥46.6 billion, supported by a stable workforce of over 1,600 employees.
Strategic priorities for the upcoming fiscal year emphasize global expansion and the diversification of digital services. The Metaverse segment is positioned for aggressive growth through the REALITY platform, which is transitioning into a corporate service provider via its "World" offerings. Simultaneously, the Commerce and DX segment is scaling its SaaS marketing capabilities, with the aumo My Business service now reaching over 30,000 participating locations. Although a short-term profit decline is anticipated in fiscal year 2023 following the peak performance of recent hit titles, the long-term objective remains a return on equity of 10% or higher.
The Investment and Incubation segment continues to serve as a critical pillar of value, managing a portfolio of 28 venture capital funds and 34 startups with total assets under management reaching ¥71.6 billion. This segment provides high internal rates of return and a valuation of ¥31.4 billion in operational investment securities. By integrating these investment returns with global IP distribution in the Game and Anime sectors, the organization aims to achieve discontinuous growth and solidify its presence across the international digital entertainment and marketing landscapes.
