FY2023 Second Quarter Financial Results

GREE reported Q2 FY2023 net sales of ¥16.6 billion and an operating income of ¥1.7 billion, though the company recorded a net loss of ¥0.9 billion due to foreign exchange and investment security valuation losses.

The hit title 'Heaven Burns Red' remains the primary revenue driver for the Internet and Entertainment segment, with the company currently executing a global rollout in Korean and traditional Chinese markets.

The Metaverse business, anchored by the REALITY platform, is a core strategic priority, with current efforts focused on expanding communication and world-building features like the Tokyo Dome World collaboration.

The Investment and Incubation segment manages ¥77.3 billion in total assets, maintaining a focus on long-term returns from venture capital funds and startup investments despite a slight quarter-on-quarter valuation decrease.

Total costs for the quarter were reduced to ¥14.8 billion, primarily driven by a decrease in variable expenses.

Management anticipates a year-on-year decline in total profit as the company continues to prioritize aggressive medium-to-long-term investments in the Metaverse and new intellectual property development.