FinancialGREE
FY2023 First Quarter Financial Results
1 Nov 202225 pages~10 min full read
GREE reported Q1 FY2023 net sales of ¥16.6 billion and operating income of ¥1.6 billion, reflecting a profit decline compared to the previous fiscal year's high-performing anniversary events.
See it on page 5The Metaverse platform REALITY reached over 10 million global downloads across 63 countries, serving as a primary pillar for the company's long-term growth strategy.
See it on page 14The Investment and Incubation segment grew its assets under management to ¥78.9 billion, an increase of ¥7.3 billion from the previous quarter.
See it on page 19The Game and Anime segment performance was anchored by the continued success of the title Heaven Burns Red, which maintained high sales rankings through content expansions.
See it on page 11The company holds ¥32.6 billion in unrealized valuation from operational investment securities, supporting its ongoing global venture capital and startup investment strategy.
See it on page 19Management anticipates a year-on-year decline in total profit for FY2023 due to a high baseline from the previous year and deliberate, aggressive reinvestment into Metaverse development.
See it on page 2GREE maintains a stable financial foundation with ¥89.7 billion in net assets and a workforce of 1,632 employees.
See it on page 23GREE’s financial results for the first quarter of fiscal year 2023 reflect a period of strategic transition characterized by steady performance in core gaming titles and aggressive expansion into the Metaverse. The company reported net sales of ¥16.6 billion and an operating income of ¥1.6 billion. While these figures represent a quarter-on-quarter decline in profit following the exceptional success of hit titles and anniversary events in the previous fiscal year, the Internet and Entertainment business surpassed internal forecasts.
The Game and Anime segment was anchored by the continued strong performance of Heaven Burns Red, which maintained high sales rankings through storyline expansions and successful marketing campaigns. Simultaneously, the Metaverse business saw significant growth, with the REALITY platform surpassing 10 million global downloads across 63 countries. Management is prioritizing long-term growth through the expansion of REALITY’s communication functions and the development of new titles leveraging both first-party and third-party intellectual property.
The Investment and Incubation segment remains a significant pillar of value, with total assets under management reaching ¥78.9 billion, an increase of ¥7.3 billion from the previous quarter due to asset revaluation. The company continues to invest in venture capital funds and startups globally, maintaining a high unrealized valuation of ¥32.6 billion in operational investment securities.
The outlook for the remainder of fiscal year 2023 anticipates stable income but a year-on-year decline in overall profit. This is attributed to a high baseline from the previous year and a deliberate strategy of aggressive investment in the Metaverse and other growth areas. The company maintains a solid balance sheet with ¥89.7 billion in net assets and a headcount of 1,632 employees, signaling a commitment to sustained infrastructure and talent development.
