FY2021 Third Quarter Financial Results Briefing

Key insights

6 takeaways

01
GREE Inc. exceeded Q3 FY2021 forecasts with ¥13.9 billion in net sales, ¥1.7 billion in operating income, and ¥1.9 billion in EBITDA.See it on page 1
02
Operating income grew by ¥1.2 billion quarter-over-quarter, bolstered by the successful January 20 launch of 'Assault Lily: Last Bullet' and a ¥0.9 billion reduction in operating costs.See it on page 1
03
The company is executing a shareholder return strategy, having completed 60% of its ¥12 billion stock repurchase program and projecting an FY2021 dividend of ¥11 per share.See it on page 2
04
Management maintains a positive outlook for the remainder of the fiscal year, forecasting Q4 operating income of approximately ¥1 billion and overall growth in full-year net and operating income.See it on page 1
05
The 'Assault Lily: Last Bullet' title reached 16th in app-sales rankings, supporting a pipeline that includes two to three new in-house titles annually and upcoming releases like 'That Time I Got Reincarnated as a Slime'.See it on page 2
06
The REALITY platform continues to scale through expanded avatar gacha offerings, user events, and targeted advertising campaigns.See it on page 3

Summary

The briefing presents FY2021 third-quarter financial results for GREE Inc., highlighting a net sales figure of ¥13.9 billion, operating income of ¥1.7 billion and EBITDA of ¥1.9 billion, all exceeding forecasts. Operating income rose by ¥1.2 billion from the prior quarter to ¥1.72 billion, driven by strong performance of the newly released title “Assault Lily: Last Bullet” and cost-control measures that reduced variable costs, royalties, and fixed labor and outsourcing expenses by ¥0.9 billion to a total cost of ¥12.2 billion.

Key operational developments include the launch of “Assault Lily: Last Bullet” on January 20, its rapid climb to 16th in app-sales rankings, and the planned release of “That Time I Got Reincarnated as a Slime” later in 2021. The company maintains a pipeline of two to three new in-house titles annually, with additional IP collaborations such as “SINoALICE” and “DanMachi.” Live-entertainment activities on the REALITY platform expanded through new avatar gacha offerings and user events, while advertising campaigns continued to energize communities.

Financial outlook remains positive: operating income for Q4 is projected at roughly ¥1 billion, and full-year FY2021 forecasts anticipate growth in both operating income and net income. Dividend policy targets a 2% distribution of earnings, with an FY2021 payout forecast of ¥11 per share. Stock repurchase activity has reached 60% of a planned upper limit of ¥12 billion, underscoring management’s commitment to shareholder value.