ReportGREE
Summary of Main Supplementary Explanations Questions and Answers: FY2024 First Quarter GREE Results Briefing
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GREE maintains its FY2024 consolidated operating income guidance of ¥4.0 billion to ¥5.0 billion, as originally announced on August 3, 2023.
The company projects consolidated operating income for the second quarter at approximately ¥0.5 billion, excluding the impact of investment activities.
The REALITY metaverse platform achieved robust growth in Q1, driven by strong performance in the Japanese and North American markets through avatar and gifting monetization.
The DX Business is experiencing growth that outpaces industry averages, particularly within its client segment of national-scale food and beauty companies.
GREE’s DX Business continues to expand its client base by leveraging internal expertise in advertising, customer service, and quality assurance for both entertainment firms and non-gaming sectors.
There is no concrete release schedule for new game or anime titles due to shifting priorities and external IP dependencies, and these projects are not expected to significantly impact FY2024 earnings.
The briefing clarified GREE’s strategic focus and financial outlook for FY2024. Development activities remain fluid, with no concrete release schedule disclosed due to external IP dependencies and shifting priorities. In the Metaverse platform segment, the REALITY service showed robust growth in the first quarter, driven by Japan and North America. Monetization diversified across avatars and gifting, contributing to earnings from the platform business. The DX Business continues to expand its client base, split between game and entertainment firms—leveraging GREE’s expertise in advertising, customer service, and quality assurance—and national‑scale food and beauty companies that benefit from digital marketing support. Growth in the latter segment is noted to outpace industry averages.
Financial projections for the second quarter exclude investment activities, estimating consolidated operating income around ¥0.5 billion. Year‑end guidance remains unchanged from the August 3, 2023 announcement, targeting consolidated operating income between ¥4.0 and ¥5.0 billion for FY2024, with no significant impact expected from new game or anime titles or the investment arm. The company’s emphasis on platform monetization and diversified DX services underpins its confidence in maintaining steady earnings growth amid a competitive digital landscape.
