GREE Quarterly Financial Results: 4Q FY2020

The financial performance of GREE for the fourth quarter of the 2020 fiscal year reflects a period of contraction, characterized by a decline in both revenue and profitability. Net sales for the quarter reached 14,994 million yen, continuing a downward trend observed throughout the fiscal year. The company reported an operating loss of 67 million yen and a net loss of 2,009 million yen for the final quarter, marking a significant departure from the positive earnings recorded in previous periods.

Key performance indicators highlight a steady decline in user engagement, as evidenced by total coin consumption. Aggregate coin consumption fell to 140 hundred million coins in the fourth quarter of fiscal year 2020, down from 256 hundred million coins in the first quarter of fiscal year 2016. This decline is consistent across all segments, including web games on feature phones and smartphones, as well as application-based games. Despite these challenges, the company maintained a stable workforce, with consolidated employee numbers remaining relatively consistent at 1,710 by the end of the fourth quarter.

The balance sheet remains resilient, with total assets reported at 126,492 million yen and a strong cash and cash equivalents position of 87,019 million yen. Total liabilities were recorded at 13,085 million yen, while net assets stood at 113,407 million yen. The company’s financial structure shows minimal reliance on interest-bearing debt, reflecting a conservative capital management strategy. These results underscore the ongoing transition and market pressures facing the company's core gaming business segments as it navigates a competitive landscape.