ReportGREE
Summary of Main Supplementary Explanations Questions and Answers: FY2023 First Quarter GREE Results Briefing
2 pages~2 min full read
GREE projects operating income for the Internet and Entertainment Business to reach between ¥1.0 billion and ¥1.5 billion in Q2 FY2023.
See it on page 2The flagship title 'Heaven Burns Red' maintains a stable user base, with the company leveraging its development and marketing lessons from this game to inform future title releases.
See it on page 1The metaverse segment, anchored by the platform REALITY, has reached a breakeven point and is currently reinvesting profits into promotional activities to scale its user base.
See it on page 1Major game titles are expected to face a typical Q1 seasonal slowdown following a Q4 peak, with management planning anniversary events and content updates to drive engagement through late 2022.
See it on page 1The investment and incubation arm faces a cautious outlook for FY2023, with the potential for quarterly losses if exit distributions remain low.
See it on page 1The briefing outlines GREE’s strategic outlook and performance expectations for FY2023, focusing on its core gaming, metaverse, and investment activities. The company reports a stable user base for the flagship title “Heaven Burns Red,” anticipating steady earnings while continuing to develop new content. Other major titles are expected to experience a typical first‑quarter slowdown after a fourth‑quarter peak, with the company preparing anniversary events and content releases to sustain engagement through late 2022 and beyond.
GREE plans to replicate the success of “Heaven Burns Red” by applying lessons learned in development and operations to future titles, emphasizing expressive design and multifaceted marketing know‑how. In the metaverse segment, profitability has reached breakeven; the firm is expanding its user base for REALITY and reinvesting profits into promotional activities to support further growth.
The investment and incubation arm faces a cautious outlook for FY2023, with potential quarterly losses if exit distributions remain low despite some expected payouts. For the Internet and Entertainment Business, operating income for Q2 FY2023 is projected between ¥1.0 billion and ¥1.5 billion, reflecting moderate growth expectations amid market uncertainties.
Overall, GREE’s strategy centers on leveraging proven game development expertise, expanding metaverse user engagement, and managing investment risks while targeting modest income growth in its entertainment portfolio.
