FinancialGREE
Summary of Main Supplementary Explanations Questions and Answers at the FY2024 Second Quarter GREE Results Briefing Held on February 7, 2024
7 Feb 20242 pages~2 min full read
GREE forecasts a consolidated operating income of 5.0 billion yen for the full fiscal year 2024, excluding the volatility of its Investment Business.
The third quarter operating income is projected to reach 1.5 billion yen, establishing a stable baseline for core operations.
Heaven Burns Red remains the primary driver of financial performance, bolstered by strong user engagement following its second-anniversary events.
The company has strategically discontinued the title SINoALICE to better align its Game and Anime Business with long-term development objectives.
GREE is prioritizing aggressive investment in its VTuber business, focusing on rigorous talent acquisition and agency support to drive future growth.
The Investment Business is shifting focus toward accumulating new assets in the game and metaverse sectors, taking advantage of stabilizing global valuations in the United States.
GREE’s financial performance and strategic outlook for the second quarter of fiscal year 2024 reflect a period of portfolio optimization and aggressive expansion into emerging digital entertainment sectors. The primary driver of recent operational success is the strong performance of Heaven Burns Red, which saw significant engagement following its second-anniversary events. This success is balanced against the strategic discontinuation of SINoALICE, a decision made to align the Game and Anime Business with long-term development goals. While several titles remain in the development pipeline, specific release schedules remain undisclosed as the company prioritizes smooth internal progress over immediate market entry.
The VTuber Business represents a core pillar of future growth, with plans to invest aggressively in talent acquisition and agency support. Earnings in this segment are primarily driven by the talent pool, leading to a rigorous audition process that evaluates past streaming performance, character compatibility, and audience communication skills. Simultaneously, the Investment Business is entering a more favorable phase as global valuations, particularly in the United States, begin to stabilize after a period of excess. GREE intends to leverage its established network in the game and metaverse domains to accumulate new investment assets during this market correction.
Financial projections for the remainder of the fiscal year indicate steady profitability. Excluding the volatile Investment Business, consolidated operating income is forecasted at approximately 1.5 billion yen for the third quarter and 5.0 billion yen for the full fiscal year 2024. These figures suggest a stable baseline for the company’s core operations as it navigates the transition between legacy titles and new growth initiatives in the virtual talent and investment sectors.
