FY2022 3Q Financial Results Briefing

The briefing presents GREE, Inc.’s FY2022 third-quarter financial performance and strategic outlook. Net sales reached ¥20.8 billion, operating income stood at ¥3.6 billion, and EBITDA was ¥3.8 billion, with the Internet and Entertainment Business contributing ¥3.1 billion of operating income. A key driver was the launch of “Heaven Burns Red” on February 10, which achieved multiple No. 1 sales rankings and generated significant revenue growth; aggressive advertising spending of approximately ¥900 million, nearly double the prior quarter, supported this success. Variable costs fell due to a favorable sales mix, while fixed costs rose slightly from one-time office relocation expenses. The Investment and Incubation Business delivered a stable ¥0.4 billion operating income, with assets under management reaching ¥71.4 billion.

Geographically the results reflect Japan-centric operations, with a growing global distribution effort in the Metaverse segment through the REALITY platform. The company projects continued growth for FY2022, estimating fourth-quarter operating income of ¥2.5–¥3.0 billion for the Internet and Entertainment Business, contingent on new title performance. Dividend policy remains steady at ¥11 per share, targeting a 2% dividend-on-DOE and a consolidated payout ratio of at least 20%.

Methodologically, the briefing draws on quarterly financial statements and internal cost-structure analysis. It highlights ongoing content releases (e.g., “Echoes of Mana”), planned annual launches of 2–3 in-house titles, and expanding SaaS offerings such as “aumo My Business.” Investment performance metrics (IRR across phases) indicate alignment with benchmarks, while market-related valuation adjustments have kept investment book values flat.