ReportGREE
Summary of main supplementary explanations questions and answers at the FY2025 First Quarter GREE results briefing held on November 5, 2024
1 pages~2 min full read
GREE is launching the English version of 'Heaven Burns Red' in partnership with Yostar Games, leveraging the publisher's expertise in growing English-speaking fan communities.
The company is prioritizing proactive community building and marketing efforts ahead of the 'Heaven Burns Red' English launch to drive engagement.
Management expects valuation-loss risks in the investment segment to remain consistent with Q1 FY2025 levels in the near term.
While short-term volatility persists, GREE anticipates stable medium-to-long-term earnings as existing funds mature through asset sales and dividend yields.
The company has mitigated long-term investment risk by diversifying its portfolio and limiting exposure to funds nearing the end of their operating cycles.
GREE remains committed to its internal investment strategy, focusing on GREE-Group managed funds like GREE Ventures, with potential risk exposure expected only after several years.
The briefing clarified GREE’s strategic focus for FY2025 first‑quarter results, emphasizing both gaming and investment operations. In the gaming segment, the company confirmed that advance registrations for the English version of “Heaven Burns Red” are strong and that distribution will be handled by Yostar Games, whose track record in expanding English‑speaking fan communities is expected to generate significant buzz. GREE highlighted ongoing community building efforts prior to launch, underscoring a proactive marketing approach.
Regarding the investment business, management acknowledged that valuation‑loss risk remains comparable to Q1 FY2025 levels. The primary driver of past losses was large investments in funds nearing the end of their operating periods; however, diversification and limited exposure to such funds mitigate long‑term impact. GREE maintains that while short‑term volatility may persist, medium‑to‑long‑term earnings should remain stable as funds mature and yield dividends or asset sales. The company reiterated its commitment to investing in GREE‑Group managed funds, including GREE Ventures, and expects related risks to surface only after several years.
Overall, the briefing presented a balanced outlook: aggressive growth in the gaming arm through strategic partnerships and community engagement, coupled with cautious yet steady investment practices aimed at preserving earnings stability amid inherent valuation risks.
