Back to Library
Summary
The second‑quarter financial results for FY 2023 show net sales of ¥16.6 billion, operating income of ¥1.7 billion, and EBITDA of ¥1.8 billion, a slight decline from the prior quarter but an improvement over FY 2022. Ordinary income fell to ¥0.6 billion due to foreign‑exchange losses, while net income turned a ¥0.9 billion loss after a valuation hit on investment securities. Operating income growth was driven by the Investment and Incubation Business, which offset a decline in the Internet and Entertainment segment. Total costs decreased by ¥0.2 billion QoQ, largely from reduced advertising and commission fees; labor costs remained stable. Geographically the company continues to expand its global footprint, notably through the release of Korean and traditional Chinese versions of the flagship title “Heaven Burns Red,” which secured a spot on Google Play’s “Best Games of 2022.” The Metaverse platform REALITY achieved steady overseas sales growth, supported by events such as the Tokyo Dome World collaboration. The Commerce and DX divisions strengthened media potential via new social‑commerce initiatives, while the Investment and Incubation arm reported a total AUM of ¥77.3 billion, down slightly QoQ due to revaluation. Methodologically, the report aggregates consolidated financials from all operating units and includes detailed cost‑structure tables. It also presents investment performance metrics, noting a high IRR for FoF and CVC holdings. The document covers Japan‑based operations with significant international distribution activities, covering the period from FY 2022 through Q2 of FY 2023.
Tags
Pages
View all
Citation
Citation
Generating citation...
Similar Documents
Report
FY2023 Third Quarter Financial Results: GREE
GREE reported FY 2023 third‑quarter results with net sales of ¥22.2 billion, operating income of ¥4.2 billion and EBITDA of ¥4.3 billion, reflecting a 15.7 % QoQ rise in sales and a 23.8 % YoY increase compared with the same period in FY 2022. Operating income grew 15.8 % QoQ, driven by the Internet and Entertainment Business (¥1.8 billion) and Investment and Incubation Business (¥2.4 billion). The company highlighted strong performance of its flagship title *Heaven Burns Red*, which achieved No. 1 sales rankings in Japan and several overseas markets following a one‑year anniversary event and aggressive promotional spending. Global distribution of the title began in February 2023, with Korean and traditional Chinese versions launching smoothly. Cost analysis shows advertising expenses rising to ¥3.08 billion QoQ, largely due to upfront promotional investments for app games, while commission fees increased to ¥4.11 billion as sales expanded. Total costs climbed by ¥3.08 billion QoQ to ¥17.93 billion. GREE’s investment arm maintained a total AUM of ¥75.0 billion, with FoF and CVC investments generating high long‑term returns (IRR 23 % for FoF, 20 % for CVC). The company’s dividend policy targets a consolidated payout ratio of at least 20 %, with a planned per‑share dividend of ¥11, consistent with the FY 2022 level. Geographically, operations span Japan, Korea, China, and North America, with the Metaverse Business expanding through REALITY XR cloud and VTuber talent agency FIRST STAGE PRODUCTION. The company projects stable FY 2023 income, acknowledging a potential profit decline following the strong FY 2022 hit‑title performance.
GREE
Financial
FY2023 First Quarter Financial Results
GREE’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.
GREENov 2022
