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Financial
Summary of Main Supplementary Explanations Questions and Answers at the FY2023 Fourth Quarter GREE Results Briefing
GREE’s strategic outlook following the fourth quarter of fiscal year 2023 emphasizes a transition toward a more diversified business portfolio to mitigate the challenges of an increasingly low-margin smartphone game market. The company is shifting its development pipeline into four distinct categories: in-house development, regional expansion, joint development, and licensing. This approach leverages successful intellectual properties like Heaven Burns Red to secure collaboration opportunities with global IP holders. While specific release dates for the 2024 fiscal year remain undisclosed, the focus is on maintaining high quality despite rising development scales that have pressured industry-wide profitability. The Metaverse Business segment represents a critical growth pillar, with the Platform and B2B Metaverse divisions already achieving profitability. Earnings from these areas are being reinvested into the VTuber and Web3 businesses. The long-term objective is for all four metaverse sub-sectors to be profitable by fiscal year 2026, contributing significantly to group earnings. Current synergies are primarily indirect, such as the high international profile of the REALITY platform driving interest in English-speaking VTuber auditions, though more direct promotional integrations are planned as these businesses mature. Financial projections indicate a conservative near-term outlook, with consolidated operating income for fiscal year 2024 estimated between 4.0 and 5.0 billion yen. This forecast accounts for a lack of major new title contributions and a reactive decline following previous investment gains. By fiscal year 2026, the company aims for a more balanced income structure where approximately half of non-investment operating income is generated by segments outside of the Game and Anime Business. This medium-term strategy focuses on stabilizing earnings through business portfolio adjustments while targeting consistent 10% returns from the Investment Business.
GREEAug 2023
Financial
Summary of Main Supplementary Explanations Questions and Answers at the FY2024 Third Quarter GREE Results Briefing
GREE’s financial performance for the third quarter of fiscal year 2024 reflects a strategic shift toward operational efficiency and platform diversification. Earnings improvements in the Game and Anime Business were primarily driven by the optimization of promotional spending, particularly for the title Heaven Burns Red following its second anniversary, and a comprehensive reorganization of human resources. By reviewing all active projects and reassigning development and management personnel to more profitable ventures, the company successfully streamlined its cost structure. Future growth strategies emphasize multiplatformization as a core pillar for the gaming segment. Recognizing the evolving market landscape, preparations are currently underway to expand beyond mobile into console game development. Simultaneously, the VTuber Business is receiving targeted investments focused on two areas: increasing management personnel to support a growing talent pool and enhancing live event production and merchandise marketing. While these investments aim for near-term sales growth, long-term success is being measured through fan engagement metrics, such as simultaneous connections during live streams, rather than immediate financial returns alone. Financial projections for the remainder of the fiscal year indicate a stable outlook. Excluding the Investment Business, consolidated operating income is expected to reach approximately 1.5 billion yen for the fourth quarter. This brings the projected full-year consolidated operating income to a range of 5 to 6 billion yen. These figures underscore a period of stabilization and disciplined investment as the company transitions toward a broader multiplatform presence and scales its emerging digital talent initiatives.
GREEMay 2024
Financial
GREE Holdings FY2025 Q2 Financial Results Briefing (Transcript)
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.
GREEFeb 2025
Financial
GREE Holdings FY2025 Q3 Financial Results Briefing (Transcript)
GREE Holdings’ third-quarter financial results for fiscal year 2025 highlight a strategic reorganization and strong performance across its core segments. A primary development is the establishment of the IP Business as a standalone reportable segment, consolidating anime licensing and manga-related activities to capitalize on the growing global importance of content IP. While consolidated results showed a quarter-on-quarter decline in sales and profit due to the absence of a large one-time dividend from the Investment Business and foreign exchange losses, the company’s organic business segments achieved growth in both sales and operating profit, exceeding internal forecasts. The Game Business remains a primary driver, bolstered by the successful launch of Puella Magi Madoka Magica Magia Exedra. This title follows previous hits like Heaven Burns Red, reinforcing the company’s "engine strategy" for consistent RPG development. In the Metaverse segment, GREE achieved record-high quarterly sales and operating margins, driven by diversified payment options in its platform business and the expansion of its VTuber talent agencies. The DX Business is transitioning toward a recurring-earnings model through new SaaS products, while the Investment Business continues to maintain a favorable internal rate of return despite inherent quarterly volatility. Financially, the company maintains a robust position with an equity ratio well above its 60% target and a net cash surplus. To mark its 20th anniversary, GREE announced a commemorative dividend of ¥10 per share in addition to its regular ¥4.5 dividend. Looking ahead to the full year, while total sales may fall short of initial forecasts due to game release delays, the company expects to meet its operating profit targets through improved profitability and disciplined cost management across its four primary business segments.
GREEMay 2025