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Financial
Summary of Main Supplementary Explanations Questions and Answers at the FY2024 Third Quarter GREE Results Briefing
GREE’s financial performance for the third quarter of fiscal year 2024 reflects a strategic shift toward operational efficiency and platform diversification. Earnings improvements in the Game and Anime Business were primarily driven by the optimization of promotional spending, particularly for the title Heaven Burns Red following its second anniversary, and a comprehensive reorganization of human resources. By reviewing all active projects and reassigning development and management personnel to more profitable ventures, the company successfully streamlined its cost structure. Future growth strategies emphasize multiplatformization as a core pillar for the gaming segment. Recognizing the evolving market landscape, preparations are currently underway to expand beyond mobile into console game development. Simultaneously, the VTuber Business is receiving targeted investments focused on two areas: increasing management personnel to support a growing talent pool and enhancing live event production and merchandise marketing. While these investments aim for near-term sales growth, long-term success is being measured through fan engagement metrics, such as simultaneous connections during live streams, rather than immediate financial returns alone. Financial projections for the remainder of the fiscal year indicate a stable outlook. Excluding the Investment Business, consolidated operating income is expected to reach approximately 1.5 billion yen for the fourth quarter. This brings the projected full-year consolidated operating income to a range of 5 to 6 billion yen. These figures underscore a period of stabilization and disciplined investment as the company transitions toward a broader multiplatform presence and scales its emerging digital talent initiatives.
GREEMay 2024
Financial
Summary of Main Supplementary Explanations Questions and Answers at the FY2023 Fourth Quarter GREE Results Briefing
GREE’s strategic outlook following the fourth quarter of fiscal year 2023 emphasizes a transition toward a more diversified business portfolio to mitigate the challenges of an increasingly low-margin smartphone game market. The company is shifting its development pipeline into four distinct categories: in-house development, regional expansion, joint development, and licensing. This approach leverages successful intellectual properties like Heaven Burns Red to secure collaboration opportunities with global IP holders. While specific release dates for the 2024 fiscal year remain undisclosed, the focus is on maintaining high quality despite rising development scales that have pressured industry-wide profitability. The Metaverse Business segment represents a critical growth pillar, with the Platform and B2B Metaverse divisions already achieving profitability. Earnings from these areas are being reinvested into the VTuber and Web3 businesses. The long-term objective is for all four metaverse sub-sectors to be profitable by fiscal year 2026, contributing significantly to group earnings. Current synergies are primarily indirect, such as the high international profile of the REALITY platform driving interest in English-speaking VTuber auditions, though more direct promotional integrations are planned as these businesses mature. Financial projections indicate a conservative near-term outlook, with consolidated operating income for fiscal year 2024 estimated between 4.0 and 5.0 billion yen. This forecast accounts for a lack of major new title contributions and a reactive decline following previous investment gains. By fiscal year 2026, the company aims for a more balanced income structure where approximately half of non-investment operating income is generated by segments outside of the Game and Anime Business. This medium-term strategy focuses on stabilizing earnings through business portfolio adjustments while targeting consistent 10% returns from the Investment Business.
GREEAug 2023
Financial
Summary of Main Supplementary Explanations Questions and Answers at the FY2020 Second Quarter GREE Results Briefing Held on February 3, 2020
GREE’s financial performance for the second quarter of fiscal year 2020 reflects a strategic diversification beyond core mobile gaming into investment, advertising, and live entertainment sectors. Operating income for the upcoming third quarter is projected to remain stable between 0.5 billion and 1.0 billion yen. A significant portion of the recent growth in ordinary and net income is attributed to the successful listing of companies within the corporate venture capital portfolio, suggesting that the investment business serves as a primary driver for financial upside alongside traditional operations. The gaming segment demonstrates successful international expansion, particularly through the global marketing of Another Eden. By leveraging intellectual property collaborations with Persona 5 and optimizing digital advertising, the company doubled its overseas user base during the period. Meanwhile, the Advertising and Media business is trending toward profitability, with the goal of reaching that milestone before the end of the fiscal year. These developments indicate a shift toward more efficient user acquisition and monetization strategies across the company's digital ecosystem. Future growth initiatives are heavily centered on the Live Entertainment business and the REALITY virtual live distribution platform. While large-scale promotional schedules remain undecided, monthly investments continue to focus on platform functionality and development. Management views the VTuber market as a high-growth area, encompassing both talent management and broader live streaming services. The anticipated rollout of 5G technology is expected to serve as a critical catalyst for this segment, providing the necessary infrastructure to support expanded virtual reality and live distribution capabilities.
GREEFeb 2020
Financial
GREE Holdings FY2024 Q4 Financial Results Briefing (Transcript)
GREE, Inc. reported its financial results for the fourth quarter and full fiscal year ending June 2024, detailing a period of strategic transition and investment. For FY2024, the company achieved net sales of ¥61.3 billion and an operating profit of ¥6.0 billion. While quarterly results met internal expectations, both sales and profit saw year-over-year declines, primarily due to a reactive drop following major anniversary events for the flagship title Heaven Burns Red and increased development costs for upcoming projects. The company’s strategy centers on bifurcating its portfolio into continuous growth businesses and long-term investment businesses. The Metaverse segment emerged as a highlight, with the platform business reaching full-year profitability and gifting sales driving a 25% operating margin. This profit is being reinvested into the VTuber business, which saw a 190% year-over-year increase in sales. Conversely, the Game and Anime Business is undergoing a structural transformation; GREE has adjusted its medium-term targets for FY2026 downward as it pushes back release schedules to focus on high-quality multiplatform development and a full-scale entry into the console market. Looking ahead to FY2025, GREE forecasts sales of ¥60.2 billion and an operating profit of ¥3.8 billion. This outlook reflects aggressive spending on new game titles and SaaS product development within the newly restructured DX Business, which now integrates the former Commerce segment. The company also significantly increased its shareholder returns, raising its dividend to ¥16.5 per share in line with a revised policy targeting a 30% payout ratio. Management expects these investments to yield substantial growth by FY2027 as the new product pipeline matures.
GREEAug 2024