GREE Holdings FY2025 Q3 Financial Results Briefing (Transcript)

GREE Holdings’ third-quarter financial results for fiscal year 2025 highlight a strategic reorganization and strong performance across its core segments. A primary development is the establishment of the IP Business as a standalone reportable segment, consolidating anime licensing and manga-related activities to capitalize on the growing global importance of content IP. While consolidated results showed a quarter-on-quarter decline in sales and profit due to the absence of a large one-time dividend from the Investment Business and foreign exchange losses, the company’s organic business segments achieved growth in both sales and operating profit, exceeding internal forecasts.

The Game Business remains a primary driver, bolstered by the successful launch of Puella Magi Madoka Magica Magia Exedra. This title follows previous hits like Heaven Burns Red, reinforcing the company’s "engine strategy" for consistent RPG development. In the Metaverse segment, GREE achieved record-high quarterly sales and operating margins, driven by diversified payment options in its platform business and the expansion of its VTuber talent agencies. The DX Business is transitioning toward a recurring-earnings model through new SaaS products, while the Investment Business continues to maintain a favorable internal rate of return despite inherent quarterly volatility.

Financially, the company maintains a robust position with an equity ratio well above its 60% target and a net cash surplus. To mark its 20th anniversary, GREE announced a commemorative dividend of ¥10 per share in addition to its regular ¥4.5 dividend. Looking ahead to the full year, while total sales may fall short of initial forecasts due to game release delays, the company expects to meet its operating profit targets through improved profitability and disciplined cost management across its four primary business segments.