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Financial
FY2022 First Quarter Financial Results
GREE’s financial results for the first quarter of fiscal year 2022, ending September 30, 2021, reflect a period of strategic transition and heavy investment in new growth pillars. The company reported net sales of ¥13.7 billion and an operating income of ¥1.6 billion. While these figures represent a slight decline compared to the previous quarter and the same period last year, the results were bolstered by the Investment and Incubation Business, which offset a temporary dip in the Internet and Entertainment segment. The Internet and Entertainment Business saw a decrease in revenue following the conclusion of major anniversary events for flagship titles like Another Eden and SINoALICE. However, the company made significant progress in its game pipeline, launching That Time I Got Reincarnated as a Slime: ISEKAI Memories and initiating pre-registration for Heaven Burns Red. Simultaneously, the company is aggressively expanding its Metaverse Business through the REALITY app, which achieved global distribution and saw increased advertising investment to grow its international user base. The Investment and Incubation Business remains a critical earnings pillar, with assets under management reaching approximately ¥67.0 billion. This segment contributed ¥1.1 billion in operating income during the quarter, driven by revaluations of startup investments and venture capital fund performance. The company’s total assets stood at ¥141.8 billion, supported by a strong cash position of ¥91.5 billion. Looking ahead, the company aims for sales and profit growth through the stable operation of existing games and the release of two to three in-house developed titles annually. Management also emphasized shareholder returns, executing a stock repurchase program of up to 35 million shares. The overall strategy focuses on strengthening the three core pillars of gaming, the metaverse, and investment to ensure long-term stability and growth.
GREENov 2021
Financial
FY2023 Second Quarter Financial Results
GREE’s financial results for the second quarter of fiscal year 2023 reflect a period of strategic global expansion and aggressive investment in the Metaverse, despite a decline in overall profitability. The company reported net sales of ¥16.6 billion and an operating income of ¥1.7 billion. While operating income surpassed forecasts due to the sustained performance of the hit title Heaven Burns Red, the company recorded a net loss of ¥0.9 billion for the quarter, primarily driven by foreign exchange losses and valuation losses on investment securities. The Internet and Entertainment segment remains the primary revenue driver, bolstered by the success of Heaven Burns Red, which received multiple accolades in Google Play’s Best Games of 2022. To sustain growth, the company is executing a global rollout, specifically targeting Korean and traditional Chinese markets. Simultaneously, the Metaverse business, centered on the REALITY platform, demonstrated steady growth in overseas sales. GREE is prioritizing the expansion of REALITY’s communication functions and world-building features, such as the Tokyo Dome World collaboration, to energize its international user base. The Investment and Incubation segment manages total assets of ¥77.3 billion. Although asset revaluation led to a slight quarter-on-quarter decrease in total value, the company continues to see high long-term returns from its venture capital funds and startup investments. GREE’s cost structure showed a slight reduction in total costs to ¥14.8 billion, aided by lower variable expenses. Looking ahead, the company anticipates stable income but expects a year-on-year decline in total profit as it continues to pivot toward aggressive medium-to-long-term investments in the Metaverse and new intellectual property development.
GREEFeb 2023
Financial
FY2023 Third Quarter Financial Results
GREE reported net sales of ¥22.2 billion and operating income of ¥4.2 billion for the third quarter of fiscal year 2023, reflecting a strategic balance between core gaming profitability and aggressive expansion into emerging digital sectors. Financial performance was primarily bolstered by the continued success of the flagship title Heaven Burns Red and the strategic exit of positions within the Investment and Incubation business. While the Internet and Entertainment segment experienced growth, operating income faced downward pressure from a ¥3.1 billion increase in costs, largely attributed to substantial upfront promotional investments intended to secure long-term market share. The company’s growth strategy centers on the diversification of its Metaverse and DX business units. The REALITY platform has achieved significant scale, recording over 42 million annual visitors and expanding its B2B footprint through the REALITY XR cloud and the launch of the FIRST STAGE PRODUCTION VTuber agency. These initiatives are supported by a robust financial foundation, including ¥30.8 billion in net cash and a total asset base of ¥120 billion. Despite a slight quarterly decrease in investment securities due to distributions, the investment portfolio remains a critical pillar of value, maintaining approximately ¥75 billion in assets under management. Long-term stability is further evidenced by the Investment and Incubation segment’s internal rate of return, which ranges from 16% to 23% across various phases. Although advertising expenditures rose significantly during the quarter to support global launches, the company maintained a stable headcount of 1,593 employees and reaffirmed its dividend forecast of ¥11 per share. This financial posture indicates a commitment to prioritizing medium-to-long-term growth in virtual world infrastructure and digital transformation while leveraging the steady cash flow generated by its established gaming and investment operations.
GREEMay 2023
Financial
FY2023 Fourth Quarter Financial Results
GREE Group concluded fiscal year 2023 with net sales of ¥75.4 billion and operating income of ¥12.5 billion, demonstrating resilience despite a revenue contraction in the final quarter. While the core Game and Anime segment experienced a decline in sales and income due to a reactionary dip following major promotional events for Heaven Burns Red, the Investment Business emerged as a primary driver of profitability. This segment achieved a 1,489% year-over-year increase in operating income, supported by a total Assets Under Management of ¥80.7 billion and high-performing venture capital portfolios. The strategic outlook for fiscal year 2024 and beyond focuses on structural reforms and global expansion. The Game and Anime division is pivoting toward a multilayered development strategy with a pipeline of 17 titles scheduled through 2026, emphasizing first-party IP and international distribution to offset projected short-term revenue declines. Simultaneously, the Metaverse segment has been restructured into four specialized units—Platform, VTuber, B2B, and Web3—with the goal of achieving an overseas sales ratio exceeding 50% by 2026. Although heavy investments in VTuber productions are expected to keep the segment at a break-even level in the immediate term, these efforts are central to long-term growth in the North American market. Further diversification is evident in the DX and Commerce businesses, which are transitioning toward high-margin B2B SaaS models and integrated marketing services. The aumo platform has reached 17 million monthly active users, providing a foundation for lateral expansion into the HR sector. Despite temporary margin suppression caused by initial investments and the completion of large-scale projects, the company forecasts a 48% compound annual growth rate in Commerce sales through 2026. To support these multi-sector initiatives, the group has increased its total headcount to 1,670 employees, signaling a commitment to scaling its operational capacity across its evolving digital ecosystem.
GREEAug 2023