Metaverse
Report
FY2023 Third Quarter Financial Results: GREE
GREE reported FY 2023 third‑quarter results with net sales of ¥22.2 billion, operating income of ¥4.2 billion and EBITDA of ¥4.3 billion, reflecting a 15.7 % QoQ rise in sales and a 23.8 % YoY increase compared with the same period in FY 2022. Operating income grew 15.8 % QoQ, driven by the Internet and Entertainment Business (¥1.8 billion) and Investment and Incubation Business (¥2.4 billion). The company highlighted strong performance of its flagship title *Heaven Burns Red*, which achieved No. 1 sales rankings in Japan and several overseas markets following a one‑year anniversary event and aggressive promotional spending. Global distribution of the title began in February 2023, with Korean and traditional Chinese versions launching smoothly. Cost analysis shows advertising expenses rising to ¥3.08 billion QoQ, largely due to upfront promotional investments for app games, while commission fees increased to ¥4.11 billion as sales expanded. Total costs climbed by ¥3.08 billion QoQ to ¥17.93 billion. GREE’s investment arm maintained a total AUM of ¥75.0 billion, with FoF and CVC investments generating high long‑term returns (IRR 23 % for FoF, 20 % for CVC). The company’s dividend policy targets a consolidated payout ratio of at least 20 %, with a planned per‑share dividend of ¥11, consistent with the FY 2022 level. Geographically, operations span Japan, Korea, China, and North America, with the Metaverse Business expanding through REALITY XR cloud and VTuber talent agency FIRST STAGE PRODUCTION. The company projects stable FY 2023 income, acknowledging a potential profit decline following the strong FY 2022 hit‑title performance.
GREE
Report
FY2023 First Quarter Financial Results
The FY2023 first‑quarter results show a net sales volume of ¥16.6 billion, operating income of ¥1.6 billion and EBITDA of ¥1.7 billion, reflecting a decline from the previous year’s strong performance driven by hit titles such as *Heaven Burns Red*. Net sales fell 4.3 % QoQ and operating income dropped 2.3 % QoQ, largely due to reduced sales in the Internet and Entertainment Business after FY22’s peak. Operating income margin contracted from 23 % in Q4 FY22 to 9.5 % in Q1 FY23, with variable costs rising by ¥2.0 billion to ¥15.0 billion. Cost structure analysis indicates advertising and commission fees were the largest expense categories, with commission fees decreasing by ¥1.27 billion QoQ due to lower sales. Labor and rental costs remained relatively stable, while other operating expenses fell slightly. Total cost reductions of ¥2.0 billion QoQ helped offset revenue declines. Strategic initiatives highlighted include aggressive investment in the Metaverse Business, where global downloads of *REALITY* surpassed 10 million across 63 countries, and expansion of content communication features. The Entertainment segment continued to leverage *Heaven Burns Red* through storyline extensions, anniversary campaigns, and merchandise collaborations, maintaining high App Store rankings. The Investment and Incubation arm reported a total AUM of ¥78.9 billion, up ¥7.3 billion QoQ, driven by gains in venture fund valuations and new investments in Japanese and U.S. startups. Overall, the quarter demonstrates a shift from FY22’s high‑growth momentum to a more stable income outlook, with continued focus on IP development, Metaverse expansion, and venture investment to sustain long‑term earnings.
GREE
