ReportGREE
Summary of main supplementary explanations questions and answers at the FY2022 Fourth Quarter GREE results briefing held on August 4, 2022
3 pages~5 min full read
GREE’s FY2022 Q4 earnings growth was driven by the successful launch of *Heaven Burns Red* and high-performing anniversary events, validating a 'release blitz' strategy focused on high-quality 3D rendering and marketing.
See it on page 1The company has allocated ¥10 billion over two to three years to its Metaverse business, which has currently reached a breakeven point as it seeks to expand its global user base.
See it on page 1Operating income for the Internet and Entertainment segment is projected to decline to ¥1.0–¥1.5 billion in FY2023 Q1, reflecting a normalization after the peak performance of new titles in FY2022 and ongoing system investments.
See it on page 2The Investment and Incubation business is positioned for medium-to-long-term stability with a target return on investment of 10% or higher.
See it on page 2GREE is diversifying its media strategy by leveraging first-party IP across games, anime, and manga to increase user engagement channels.
See it on page 2The DX business is undergoing a structural transition to integrate marketing support services into a unified, data-driven platform for corporate clients.
See it on page 2The briefing focused on GREE’s financial performance and strategic initiatives for FY2022, highlighting the strong contribution of new titles such as *Heaven Burns Red* and anniversary events to quarter‑over‑quarter earnings growth. The company attributed this success to a “release blitz” strategy launched in FY2017, which has since strengthened marketing, game quality through an engine‑centric approach, and content volume at launch. These measures have enabled the company to exceed fan expectations, generate significant social media buzz, and deliver high‑quality 3D rendering.
Investment in the Metaverse Business is progressing as planned, with a ¥10 billion allocation over two to three years and the business reaching breakeven. GREE intends to continue expanding its global user base and sales through further investment. The DX Business is being restructured to integrate marketing support services, creating a data‑driven platform that offers comprehensive digital transformation solutions to corporate clients. Meanwhile, the Manga Business is introduced as part of a broader media diversification strategy aimed at leveraging first‑party IP across games, anime, and manga to broaden user engagement channels.
The Investment and Incubation Business is expected to provide stable medium‑to‑long‑term earnings, with a target return on investment of 10 % or higher. For FY2023 Q1, operating income in the Internet and Entertainment segment is projected at ¥1.0–¥1.5 billion, reflecting a decline from the strong performance of new titles and anniversary events in FY2022 while anticipating continued system‑strengthening investments.
