FY2023 First Quarter Financial Results Briefing

GREE, Inc. reported FY2023 first‑quarter results with net sales of ¥16.6 billion and operating income of ¥1.58 billion, driven largely by the Internet and Entertainment segment. The flagship game “Heaven Burns Red” continued to outperform expectations, sustaining high sales rankings and generating strong variable revenue; however, quarter‑on‑quarter sales declined after a peak in FY22 due to the absence of new releases and anniversary events. Variable costs fell, while fixed costs remained stable, resulting in a total cost reduction of ¥2.0 billion to ¥15.0 billion.

The Metaverse business, centered on the global platform REALITY, achieved a milestone of 10 million downloads across 63 countries. GREE plans to expand content and communication features—such as new gaming titles, reaction stickers, and chat GIFs—to increase user engagement and monetize the platform further. The Commerce and DX segment continued to grow its SaaS offering, aumo My Business, with rising media users and clients.

Investment and Incubation activities saw an AUM increase to ¥80 billion, driven by asset revaluation and new investments in three VC funds (Japan and the U.S.) and 14 startups. Despite a decline in listed‑stock valuations, unlisted holdings rose, improving overall portfolio value and IRR, particularly in the growth phase.

Geographically, GREE’s operations span Japan and international markets, with a focus on expanding overseas reach for both gaming and Metaverse services. The company anticipates stable income in FY23, with a projected operating income of ¥1.0–¥1.5 billion for the second quarter, while maintaining aggressive investment in Metaverse development.