GREE Holdings FY2025 Q1 Financial Results Briefing (Transcript)

GREE, Inc.’s financial results for the first quarter of fiscal year 2025 reflect a period of mixed performance characterized by operational growth in core segments offset by significant volatility in the investment portfolio. The company reported net sales of ¥12.9 billion and a consolidated operating loss of ¥0.1 billion. While the Game and Anime, Metaverse, and DX businesses exceeded internal forecasts, the overall bottom line was pulled down by an ¥0.8 billion operating loss in the Investment Business and a ¥1.4 billion foreign exchange loss resulting from yen appreciation.

The Game and Anime segment remains a long-term investment focus, seeing success with the Chinese launch of Heaven Burns Red despite seasonal weakness and high development costs for the pipeline. The Metaverse segment showed resilience, with the VTuber business growing sales by 71% year-over-year and the platform business benefiting from new livestreaming features. The DX Business maintained steady profit levels while investing in a new social DX product slated for release in the third quarter. Conversely, the Investment Business suffered from a lack of dividend distributions and ¥0.6 billion in valuation losses and write-downs, particularly from crypto assets and funds nearing their settlement periods.

Geographically, the results cover GREE’s global operations, including domestic Japanese services and overseas expansions in China and the US. Management maintains a positive outlook for the remainder of FY2025, projecting a recovery in the second quarter driven by anniversary events in mainstay game titles. The long-term strategy focuses on achieving a 120–140% CAGR in the Metaverse and DX segments, with the VTuber business expected to reach profitability by FY2026. Despite recent volatility, the company emphasizes that its investment portfolio retains high unrealized value and continues to outperform industry benchmarks.