FinancialGREE
GREE Holdings FY2024 Q3 Financial Results Briefing (Transcript)
8 May 20246 pages~10 min full read
GREE reported FY2024 Q3 net sales of ¥17.2 billion and an operating profit of ¥2.5 billion, largely driven by a 93% quarter-over-quarter profit increase in the gaming segment.
The second-anniversary event for 'Heaven Burns Red' was the primary catalyst for the gaming segment's strong quarterly performance.
GREE revised its shareholder return policy, increasing its dividend on equity target from 2% to 3% and raising the minimum consolidated payout ratio from 20% to 30%.
The Metaverse Business achieved a milestone by reaching profitability for the first time with an operating profit of ¥0.08 billion.
The company maintains a full-year FY2024 operating profit forecast of ¥5 billion to ¥6 billion, excluding the investment segment, despite an expected post-anniversary decline in gaming revenue.
The Investment Business, managing approximately ¥80 billion in assets, reached a break-even point for the quarter.
Future growth strategy focuses on the upcoming release of 'Puella Magi Madoka Magica Magia Exedra' and continued investment in VTuber talent and social marketing collaborations.
GREE, Inc. reported its financial results for the third quarter of fiscal year 2024, highlighting a period of significant sequential growth driven primarily by the Game and Anime Business. The company achieved quarterly net sales of ¥17.2 billion and an operating profit of ¥2.5 billion. A central driver of this performance was the successful second-anniversary event for the title Heaven Burns Red, which led to a 93% quarter-over-quarter increase in operating profit for the gaming segment. Additionally, the company announced a revised dividend policy, increasing the dividend on equity target from 2% to 3% and the consolidated payout ratio from 20% to a 30% minimum.
The scope of the report covers GREE’s diversified portfolio, including Game and Anime, Metaverse, DX (Digital Transformation), Commerce, and Investment businesses. While the gaming sector exceeded expectations, the Metaverse Business reached a significant milestone by entering positive operating profit territory at ¥0.08 billion. The DX Business remained firm with a growing project backlog, though the Commerce Business faced headwinds due to Google algorithm updates affecting its media operations. The Investment Business, which manages approximately ¥80 billion in assets under management, broke even for the quarter following distributions from various funds.
Looking ahead to the fourth quarter and full-year 2024, the company maintains a companywide operating profit forecast between ¥5 billion and ¥6 billion, excluding the investment segment. While a reactive decline in gaming sales is expected following the anniversary peak, the company is focused on its development pipeline, including the highly anticipated Puella Magi Madoka Magica Magia Exedra. Medium-term targets for 2026 remain unchanged, emphasizing aggressive investment in VTuber talent and social marketing collaborations to sustain long-term growth.
