FinancialGREE
Summary of Main Supplementary Explanations Questions and Answers at the FY2022 Fourth Quarter GREE Results Briefing
1 Aug 20223 pages~5 min full read
GREE's FY2022 Q4 growth was primarily driven by the successful launch of 'Heaven Burns Red' and strong performance from anniversary events in mainstay titles.
The company's Metaverse business has reached its break-even point after an investment of approximately 10 billion yen allocated over a three-year period.
Operating income for the Internet and Entertainment segment is projected to decline to between 1.0 billion and 1.5 billion yen in Q1 FY2023, following an exceptionally strong Q4 performance.
GREE is prioritizing a long-term strategy initiated in 2017 that focuses on 3D rendering engine development, high-volume content delivery, and social media-driven marketing.
The company has restructured its corporate marketing services into a unified DX business unit to leverage shared databases for comprehensive digital transformation support.
A new expansion into the Manga business aims to diversify GREE's media portfolio and facilitate the multi-platform development of first-party intellectual property.
The Investment and Incubation business is expected to maintain a long-term return on investment of 10% or higher.
The fiscal year 2022 fourth-quarter results for GREE highlight a period of significant growth driven by the successful launch of Heaven Burns Red and strong performance from anniversary events in mainstay titles. This success is attributed to a long-term strategy initiated in 2017 to enhance development and operational capabilities. Key factors contributing to recent hit titles include strengthened marketing that exceeds fan expectations via social media, improved creative quality through a dedicated engine strategy focusing on 3D rendering, and the delivery of high-volume content at launch to satisfy passionate user bases.
The strategic focus extends across three primary pillars: Games and Anime, Metaverse, and Commerce and DX. The Metaverse business is currently meeting investment targets, with approximately 10 billion yen allocated over a three-year period, and has successfully reached a break-even point. In the DX sector, the company has restructured its corporate marketing services into a unified business unit to leverage shared databases and provide comprehensive digital transformation support. Furthermore, a new entry into the Manga business aims to diversify the media portfolio, allowing for multifaceted development of first-party intellectual property across games, anime, and print.
Financial outlooks remain stable but cautious for the upcoming period. While the Investment and Incubation business is expected to maintain a long-term return on investment of 10% or higher, the Internet and Entertainment segment anticipates a quarter-on-quarter decline in operating income for the first quarter of fiscal year 2023. This projected decrease to between 1.0 billion and 1.5 billion yen is due to a reactive decline following the exceptional fourth-quarter performance and planned investments into system enhancements designed to secure future profitability.
