FinancialGREE
FY2024 Fourth Quarter Financial Results
7 Aug 202467 pages~35 min full read
GREE Group reported a significant FY2024 downturn with net sales of ¥61.3 billion and an operating profit of ¥6.0 billion, representing year-over-year declines of 19% and 52% respectively.
The Game and Anime segment, previously anchored by titles like Heaven Burns Red, saw a 24% contraction in sales due to the absence of major prior-year anniversary events.
The REALITY platform achieved full-year profitability for the first time, driven by a 190% surge in VTuber business sales and an expanded roster of 59 performers.
The company projects a further 37% decline in operating profit to ¥3.8 billion for FY2025 as it prioritizes long-term investments in VTuber talent, B2B solutions, and console game development.
The Investment Business remains a stable pillar, managing ¥84.4 billion in assets with an internal rate of return exceeding 16%.
GREE has revised its FY2026 medium-term targets downward to ¥66.4 billion in sales and ¥3.1 billion in operating profit to account for rising development costs and adjusted release schedules.
Management is reorganizing the DX and Commerce segments to shift away from labor-intensive services toward a recurring-revenue SaaS model.
GREE Group concluded fiscal year 2024 with net sales of ¥61.3 billion and an operating profit of ¥6.0 billion, representing year-over-year declines of 19% and 52% respectively. This downturn was primarily driven by a 24% sales contraction in the Game and Anime segment, which suffered from reactive declines following major prior-year anniversary events for titles like Heaven Burns Red. Despite these headwinds, the company maintained profitability through rigorous cost controls and a strategic pivot toward emerging business lines.
The Metaverse segment emerged as a key growth driver, with the REALITY platform achieving full-year profitability for the first time. This success was bolstered by a 190% surge in VTuber business sales, supported by an expanded roster of 59 performers. Conversely, the DX and Commerce segments faced structural challenges, leading to a strategic reorganization aimed at transitioning from labor-intensive services to a recurring-revenue SaaS model. While the Investment Business remained a stable pillar of strength—managing ¥84.4 billion in assets with an internal rate of return exceeding 16%—the broader corporate outlook remains cautious.
Forecasts for fiscal year 2025 project a further 37% decline in operating profit to ¥3.8 billion as the company prioritizes medium-to-long-term investments. These expenditures are directed toward aggressive VTuber talent acquisition, B2B solution integration, and an expanded game development pipeline that includes a planned entry into the console market. Consequently, medium-term targets for fiscal year 2026 have been revised downward to ¥66.4 billion in sales and ¥3.1 billion in operating profit to account for adjusted release schedules and rising development costs across the Japanese and international markets.
