FinancialGREE
FY2024 First Quarter Financial Results
1 Nov 202352 pages~21 min full read
Consolidated net sales fell 22% quarter-on-quarter to ¥15.8 billion, while operating income dropped 75% to ¥1.2 billion.
See it on page 6The Investment Business reported an 86% decline in sales and a ¥0.2 billion operating loss, though the portfolio maintains an 18% internal rate of return on ¥82.7 billion in assets.
See it on page 6The Game and Anime segment remains the primary revenue driver at ¥11.7 billion, supported by a pipeline of 17 titles scheduled for release through FY2026.
See it on page 19The Metaverse segment achieved a ¥0.1 billion operating profit through cost efficiency and VTuber sector expansion, with a target of ¥1.9 billion in operating income by FY2026.
See it on page 29The Commerce business reached profitability driven by SaaS-related services, while the DX business experienced stagnation due to a reduction in operational projects.
See it on page 31The organization maintains a stable financial position with ¥50.3 billion in cash and a workforce of over 1,600 employees.
See it on page 50The first quarter of FY2024 reflects a transitional period characterized by a strategic pivot toward the Metaverse and Commerce segments amid a temporary downturn in investment income. Consolidated net sales reached ¥15.8 billion with an operating income of ¥1.2 billion, representing significant quarter-on-quarter declines of 22% and 75% respectively. This contraction was primarily attributed to the Investment Business, which experienced an 86% drop in sales and an operating loss of ¥0.2 billion due to a lack of large-scale distributions. Despite this volatility, the investment portfolio remains robust with ¥82.7 billion in assets under management and an 18% internal rate of return, significantly outperforming domestic venture capital benchmarks.
The Game and Anime segment continues to serve as the primary revenue driver, contributing ¥11.7 billion in sales. Performance within this division was bolstered by successful anniversary events for key titles like Heaven Burns Red, though overall results were tempered by a post-peak decline in other areas. To ensure long-term stability, a pipeline of 17 titles is scheduled for release through FY2026. Simultaneously, the Metaverse segment successfully revamped its earnings structure to achieve a ¥0.1 billion operating profit, supported by improved cost efficiency in the Platform Business and aggressive expansion in the VTuber sector.
Strategic diversification efforts yielded positive results in the Commerce business, which achieved profitability through the growth of SaaS-related services. While the DX business remained stagnant due to a reduction in operational projects, the broader corporate outlook remains focused on achieving ¥1.9 billion in Metaverse operating income by FY2026. With a stable balance sheet featuring ¥50.3 billion in cash and a workforce of over 1,600 employees, the organization remains positioned to meet its full-year targets by balancing mature gaming assets with emerging digital platforms and high-yield venture investments across Japan and the United States.
