FY2023 Second Quarter Financial Results Briefing

FY2023 second‑quarter results for GREE, Inc. show net sales of ¥16.6 billion and operating income of ¥1.7 billion, with EBITDA at ¥1.8 billion. The Internet and Entertainment Business generated ¥1.5 billion of operating income, exceeding forecasts largely due to the strong performance of the mobile title Heaven Burns Red. The company highlighted continued global rollout of this IP, including Korean and traditional Chinese releases scheduled for February 10, and noted its inclusion on Google Play’s “Best Games of 2022” list. Overseas sales for the metaverse platform REALITY doubled between June and December 2022, with expanding monetization and new content features such as an avatar shop and collaborative stickers.

Financially, ordinary income fell quarter‑on‑quarter because of foreign‑exchange losses on assets denominated in foreign currencies, and net income turned a ¥0.9 billion loss after a valuation loss on investment securities. Operating costs declined by ¥0.2 billion to ¥14.8 billion, with no significant structural changes.

The Investment and Incubation Business moved into profitability in Q2 after a loss in Q1, driven by distribution from investees. Asset‑under‑management figures remained stable, while new investments were made in six venture funds and eleven startups. The company maintains its FY23 outlook, projecting third‑quarter Internet and Entertainment operating income between ¥1.0 billion and ¥1.5 billion, with potential upside from global distribution gains.

Scope covers Japan‑based operations with significant overseas revenue streams; the period is FY2023 Q2, and segments include Internet & Entertainment, Metaverse, Commerce & DX, Game & Anime, and Investment & Incubation. Data derive from internal financial statements and operational metrics presented in the briefing.