GREE Holdings FY2025 Q2 Financial Results Briefing (Transcript)

GREE Holdings reported strong financial results for the second quarter of fiscal year 2025, characterized by growth in both revenue and profitability. Consolidated net sales reached ¥15.6 billion with an operating profit of ¥2.2 billion. To provide clearer insight into core operations, the company has transitioned to a "three segments" disclosure model—comprising Game and Anime, Metaverse, and DX—separating them from the more volatile Investment Business. On this three-segment basis, net sales were ¥13.7 billion and operating profit was ¥1.2 billion, exceeding previous forecasts.

The Game and Anime Business remains a primary driver, benefiting from anniversary events for "That Time I Got Reincarnated as a Slime: ISEKAI Memories" and increased investment returns from new anime broadcasts. While the company noted a delay in a new title release, it raised its full-year operating profit forecast for the segment due to operational efficiencies. The Metaverse Business achieved record quarterly sales of ¥2.1 billion, fueled by a high-performing VTuber subsegment and resilient platform earnings. Meanwhile, the DX Business is undergoing a structural shift toward a recurring-earnings SaaS model, with a major subsidiary integration into GREE X, Inc. to streamline operations.

The Investment Business saw a significant recovery, posting strong gains from fund dividends and increasing its total investment valuation to ¥36.3 billion. Strategically, GREE is shifting toward managing third-party capital to generate GP investment earnings, targeting a first close for new Japanese and U.S. funds in mid-2025. Despite anticipated short-term profit declines in the third quarter due to promotional costs for upcoming titles, the company maintains its medium-term outlook for substantial growth by FY2027, supported by a robust development pipeline and expansion into console gaming.