GREE Holdings FY2025 Q2 Financial Results Briefing (Transcript)

Key insights

6 takeaways

01
GREE Holdings reported consolidated net sales of ¥15.6 billion and an operating profit of ¥2.2 billion for FY2025 Q2, exceeding forecasts for its core Game and Anime, Metaverse, and DX segments.See it on page 1
02
The Investment Business recovered significantly, reaching a total valuation of ¥36.3 billion and shifting strategy toward managing third-party capital with new Japanese and U.S. funds targeted for mid-2025.See it on page 6
03
The Metaverse Business achieved record quarterly sales of ¥2.1 billion, driven primarily by strong performance in its VTuber subsegment and resilient platform earnings.See it on page 4
04
The Game and Anime segment raised its full-year operating profit forecast due to operational efficiencies and successful anniversary events for 'That Time I Got Reincarnated as a Slime: ISEKAI Memories'.See it on page 3
05
The DX Business is transitioning to a recurring-earnings SaaS model, marked by the integration of a major subsidiary into GREE X, Inc. to streamline operations.See it on page 5
06
The company anticipates a short-term profit decline in Q3 due to increased promotional spending for upcoming titles but maintains a medium-term growth outlook through FY2027, supported by a new console gaming expansion.See it on page 2

Summary

GREE Holdings reported strong financial results for the second quarter of fiscal year 2025, characterized by growth in both revenue and profitability. Consolidated net sales reached ¥15.6 billion with an operating profit of ¥2.2 billion. To provide clearer insight into core operations, the company has transitioned to a "three segments" disclosure model—comprising Game and Anime, Metaverse, and DX—separating them from the more volatile Investment Business. On this three-segment basis, net sales were ¥13.7 billion and operating profit was ¥1.2 billion, exceeding previous forecasts.

The Game and Anime Business remains a primary driver, benefiting from anniversary events for "That Time I Got Reincarnated as a Slime: ISEKAI Memories" and increased investment returns from new anime broadcasts. While the company noted a delay in a new title release, it raised its full-year operating profit forecast for the segment due to operational efficiencies. The Metaverse Business achieved record quarterly sales of ¥2.1 billion, fueled by a high-performing VTuber subsegment and resilient platform earnings. Meanwhile, the DX Business is undergoing a structural shift toward a recurring-earnings SaaS model, with a major subsidiary integration into GREE X, Inc. to streamline operations.

The Investment Business saw a significant recovery, posting strong gains from fund dividends and increasing its total investment valuation to ¥36.3 billion. Strategically, GREE is shifting toward managing third-party capital to generate GP investment earnings, targeting a first close for new Japanese and U.S. funds in mid-2025. Despite anticipated short-term profit declines in the third quarter due to promotional costs for upcoming titles, the company maintains its medium-term outlook for substantial growth by FY2027, supported by a robust development pipeline and expansion into console gaming.