ReportGREE
Summary of main supplementary explanations questions and answers at the FY2020 First Quarter GREE results briefing held on October 30, 2019
2 pages~2 min full read
GREE projects an operating income of approximately ¥0.5 billion for the second quarter of FY2020.
See it on page 1First-quarter sales declined due to the conclusion of major title anniversary events and the strategic transfer of titles to improve overall profitability.
See it on page 1Management expects browser game revenue to continue its decline while increasing advertising spend on high-potential mobile titles.
See it on page 1The global release strategy has shifted to allow for simultaneous launches in Japan and international markets, contingent on partner consultation.
See it on page 1The release of SINoALICE in China remains stalled due to pending regulatory approval, while other international markets rely on local distribution partners.
See it on page 1Growth for the REALITY platform is currently prioritized around content portfolio expansion and platform functionality rather than rapid scaling, pending the broader deployment of 5G infrastructure.
See it on page 2Efforts to stabilize AFTERLOST – Shoumetsu Toshi are focused on balancing the retention of the existing player base with the acquisition of new fans.
See it on page 1The briefing addressed key financial and operational questions for GREE’s first quarter of FY2020. A decline in sales was attributed to a reactive drop following anniversary events for major titles in the previous quarter and strategic title transfers aimed at improving profitability. Management projected operating income of roughly ¥0.5 billion for the second quarter, with strong expectations for core titles but a continued decline in browser game revenue; advertising spend was to increase on high‑potential games. Overseas distribution of SINoALICE remains uncertain in China due to regulatory approval, while other regions rely on local partners and progress is ongoing. Global release strategy now allows simultaneous launches in Japan and abroad, with timing set on a case‑by‑case basis after partner consultation. Challenges for AFTERLOST – Shoumetsu Toshi include attracting new fans while retaining existing ones, despite extensive fan‑targeted measures. Cost‑cutting through title transfers is viewed as a means to improve profitability, with plans to broaden the title lineup. Earnings contribution from REALITY depends on internal factors such as lifetime value enhancement and external 5G infrastructure development; the focus is on steady content portfolio expansion and platform functionality rather than rapid growth before full infrastructure deployment.
