Key insights
6 takeaways · ~2 min read- 01GREE, Inc. reported FY 2022 full-year net sales of ¥74.9 billion and operating income of ¥11.5 billion, driven by the success of new game titles like Heaven Burns Red and That Time I Got Reincarnated as a Slime.See it on page 1
- 02Net income for FY 2022 fell to ¥10.1 billion, primarily due to lower gains from investment-security sales compared to the previous fiscal year.See it on page 2
- 03The company achieved a total cost reduction of ¥0.2 billion in the fourth quarter, supported by a ¥0.24 billion decrease in variable costs and flat fixed costs.See it on page 2
- 04GREE’s FY 2023 strategy focuses on three pillars: Game and Anime, Metaverse (centered on the global REALITY platform), and Commerce & DX, which includes a SaaS solution already utilized by over 30,000 stores.See it on page 1
- 05Management projects a short-term decline in profitability, with FY 2023 first-quarter operating income forecasted between ¥1.0 billion and ¥1.5 billion.See it on page 5
- 06Medium-term growth targets include scaling the REALITY platform to hundreds of millions of users and expanding media and SaaS offerings to 100 million monthly active users.See it on page 5
Summary
GREE, Inc. reported FY 2022 full‑year net sales of ¥74.9 billion, operating income of ¥11.5 billion and EBITDA of ¥12.1 billion, marking year‑on‑year growth driven by new hit titles in the Game Business such as Heaven Burns Red and That Time I Got Reincarnated as a Slime. The company also expanded its Metaverse Business, advancing the global REALITY platform, and strengthened its Advertising and Media Business by launching a SaaS solution that attracted over 30,000 participating stores. In the fourth quarter alone, net sales reached ¥20.9 billion and operating income rose to ¥3.8 billion, supported by successful title launches and a reduction in advertising expenses.
Operating income for FY 2022 increased to ¥14.1 billion after a foreign‑exchange gain, but net income fell to ¥10.1 billion due to lower gains from investment‑security sales compared with FY 2021. Total variable costs decreased by ¥0.24 billion quarter‑on‑quarter, while fixed costs remained flat, resulting in a total cost reduction of ¥0.2 billion to ¥17.0 billion.
For FY 2023, GREE outlined a three‑pillar strategy: Game and Anime Business, Metaverse Business, and Commerce & DX Business. The company aims to grow the global user base of REALITY to hundreds of millions, expand media and SaaS offerings to 100 million monthly active users, and continue investing in VC funds and startups. Forecasts indicate a short‑term decline in operating income, with FY 2023 first‑quarter operating income projected between ¥1.0 and ¥1.5 billion, while medium‑term targets focus on viral growth in the Metaverse and sustained profitability across all pillars.
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