GREE Consolidated Financial Results for the Nine Months Ended March 31, 2024

GREE, Inc.’s consolidated financial results for the nine months ended March 31, 2024, reflect a period of contraction across most business segments. The company reported net sales of 47,199 million yen, representing a 14.7% decrease compared to the same period in the previous fiscal year. Operating profit fell by 39.6% to 4,555 million yen, while ordinary profit and profit attributable to owners of the parent declined by 27.9% and 23.2%, respectively. These results are presented under Japanese GAAP and reflect a strategic reorganization of business segments, including the Game and Anime, Metaverse, DX, Commerce, and Investment divisions.

Performance varied significantly by segment. The Game and Anime Business, the company’s primary revenue driver, saw net sales decline by 14.2% to 35,102 million yen, despite the success of specific anniversary events. The Investment Business experienced a sharp downturn, with net sales dropping 60.3% due to lower income from the sale of shareholdings within venture capital funds. Conversely, the Metaverse Business showed growth, with net sales increasing 10.5% to 5,361 million yen and achieving a return to profitability. The DX and Commerce segments remained relatively stable but faced challenges from the completion of large projects and weak media performance, respectively.

As of March 31, 2024, the company maintained a solid financial position with total assets of 127,106 million yen and an equity ratio of 73.6%. While the company has declared a year-end dividend forecast of 16.50 yen per share, it has suspended the disclosure of full-year consolidated earnings forecasts. Management cited the rapidly changing business environment and the inherent volatility of the Investment Business as primary factors making it difficult to provide reasonable or reliable future projections at this time.