GREE Quarterly Financial Results: FY2024 4Q

Key insights

7 takeaways

01
GREE's net sales for FY2024 4Q were 14,111 million yen, marking a decline from the 17,172 million yen reported in the previous quarter.See it on page 1
02
Operating income for FY2024 4Q fell to 1,426 million yen, down from 2,520 million yen in 3Q and significantly lower than the 4,958 million yen peak in FY2023 4Q.See it on page 1
03
Total variable costs decreased to 5,040 million yen in FY2024 4Q, driven largely by a reduction in commission fees to 3,661 million yen.See it on page 1
04
Fixed costs remained relatively stable at 7,644 million yen in FY2024 4Q, with labor costs accounting for 3,625 million yen of that total.See it on page 1
05
The company maintained a solid liquidity position with 49,788 million yen in cash and cash equivalents as of the end of FY2024 4Q.See it on page 2
06
Consolidated employee headcount has remained steady, ending FY2024 4Q with 1,641 staff members compared to 1,610 in the previous quarter.See it on page 2
07
Net income for FY2024 4Q was 1,429 million yen, reflecting a recovery from the net loss of 463 million yen recorded in FY2024 2Q.See it on page 1

Summary

GREE’s financial results for the fourth quarter of fiscal year 2024 reflect a period of stabilization following recent volatility in profitability. The company reported net sales of 14.1 billion yen for the final quarter, contributing to a total annual performance characterized by fluctuating operating income, which stood at 1.4 billion yen for the quarter. Net income for the same period reached 1.4 billion yen, supported by a disciplined approach to managing variable and fixed costs.

Operational expenditures show a strategic focus on cost efficiency. Total variable costs were reduced to 5.0 billion yen in the fourth quarter, driven largely by a decrease in commission fees and advertising spend compared to earlier periods in the fiscal year. Fixed costs remained relatively stable at 7.6 billion yen, with labor costs consistently accounting for a significant portion of these expenditures. The company maintained a steady workforce, ending the fiscal year with 1,641 consolidated employees, indicating a stable human capital strategy despite the shifting revenue landscape.

The balance sheet remains robust, with total assets reaching 128.8 billion yen by the end of the fourth quarter. The company maintains a strong liquidity position, reporting 49.8 billion yen in cash and cash equivalents. While interest-bearing debt has been utilized, totaling 16.7 billion yen, the company retains a positive net cash position of 33.1 billion yen. These figures underscore a conservative capital structure that prioritizes liquidity and financial flexibility. The data, covering the period from fiscal year 2021 through the fourth quarter of 2024, highlights a company navigating a mature phase of its operations with a focus on maintaining profitability through rigorous expense management and a solid asset base.