GREE Annual Report 2015

GREE’s fiscal 2015 performance reflects a period of significant structural transition and financial recalibration. The company recorded consolidated net sales of 92.5 billion yen, representing a 26.4 percent decline from the previous year. This downturn was compounded by substantial impairment losses on goodwill totaling 35.16 billion yen, primarily linked to subsidiaries such as Pokelabo and Funzio, which resulted in a net loss of 10.3 billion yen. Despite these bottom-line pressures, the company maintained a robust financial foundation, ending the year with 79.06 billion yen in cash and cash equivalents and a strong equity ratio of 80.7 percent.

The core gaming business remains the primary revenue driver, accounting for over 90 percent of total sales. To reverse the recent decline, the company has pivoted toward a native game development model, doubling its internal staff and establishing a pipeline of 15 new titles. This strategy is complemented by a broader diversification effort into new internet-based domains, specifically targeting home-related services and health and fitness platforms. These initiatives are designed to reduce reliance on legacy web-based titles and adapt to the rapid pace of technological innovation within the global mobile gaming market.

Corporate governance and risk management serve as critical pillars for the company’s long-term stability. The board has integrated independent outside directors and auditors to enhance management transparency and oversight. Operational risks remain a primary concern, with the company identifying intense market competition, potential data security breaches, and the complexities of managing international M&A activities as significant threats to future growth. By balancing a conservative financial approach with aggressive investment in native game development, the company aims to stabilize its market position while navigating the evolving regulatory and competitive landscape of the digital entertainment industry.