FinancialGREE
Summary of Main Supplementary Explanations Questions and Answers at the FY2024 Third Quarter GREE Results Briefing
8 May 20241 pages~2 min full read
GREE projects a full-year consolidated operating income between 5 and 6 billion yen, with a fourth-quarter target of approximately 1.5 billion yen excluding the Investment Business.
Profitability in the Game and Anime Business improved through the optimization of promotional spending for 'Heaven Burns Red' and a strategic reorganization of human resources across active projects.
The company is shifting its core gaming strategy toward multiplatform development, with active preparations underway to expand from mobile into console gaming.
Investment in the VTuber business is focused on scaling management personnel and enhancing live event production and merchandise marketing.
Success for the VTuber segment is being evaluated through long-term fan engagement metrics, such as simultaneous live stream connections, rather than immediate financial returns.
The company has successfully streamlined its cost structure by reassigning development and management personnel to more profitable ventures.
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.
