FY2024 Third Quarter Financial Results Briefing

GREE, Inc. reported FY2024 third‑quarter results with net sales of ¥17.2 billion, operating profit of ¥2.5 billion and EBITDA of ¥2.6 billion, reflecting a mix of strong Game and Anime performance against weaker Commerce and Investment segments. The Game and Anime Business drove a 93 % QoQ rise in operating profit, largely due to the successful two‑year anniversary events for *Heaven Burns Red*. Sales growth in this segment offset declines elsewhere, while the Metaverse Business posted a 6 % YoY sales increase to ¥1.61 billion and entered positive operating profit territory at ¥80 million, supported by Platform and VTuber sub‑segments. The DX Business achieved QoQ sales growth to ¥1.54 billion but saw a YoY profit decline, with Social DX showing positive trends after launching a joint venture in influencer marketing. Commerce Business earnings weakened due to a Google algorithm update, though a V‑shaped recovery is expected in Q4. The Investment Business broke even, maintaining an AUM of approximately ¥80 billion and continuing VC investments.

Methodologically, the briefing aggregates quarterly financials across seven business units, citing sales, operating profit, and cost structures. Forecasts for Q4 FY2024 anticipate a reactive decline post‑anniversary events, projecting sales of ¥9.6–11.3 billion and operating profit of ¥1.6–1.9 billion, while full‑year FY2024 operating profit is projected between ¥5–6 billion excluding Investment contributions. Dividend policy was revised to a 3 % DOE and up to 30 % payout ratio, with FY2024 dividends forecast at ¥16.5 per share. Medium‑term targets aim for FY2026 sales of ¥15–16 billion and operating profit around ¥2.0 billion for the Metaverse Business, with comparable growth objectives across other segments.