FY2018 3Q Result Presentation
GREE, Inc. reported FY2018 third‑quarter results with net sales of ¥17.9 billion, operating income of ¥2.8 billion and EBITDA of ¥3.2 billion, falling short of the sales target but surpassing operating profit expectations. The company attributes the sales lag to delayed releases, postponed North American operations, and a temporary slowdown in mobile game performance; however, cost reductions—particularly in commission fees, advertising spend, and fixed costs—boosted margins to 15 %. Forecasts for Q4 project net sales of ¥18.5 billion, operating income of ¥2.2 billion and EBITDA of ¥2.5 billion, with a modest decline in net profit anticipated due to increased advertising investment.
Strategically, GREE is expanding beyond its core game and advertising media businesses into a third pillar: live entertainment focused on virtual YouTubers (VTubers). The company plans to leverage its gaming, VR, and engineering capabilities for VTuber production, distribution, and IP development, aiming to monetize through merchandise, games, and partnerships. Concurrently, the media division continues to grow, highlighted by a top‑ranked travel app and diversified verticals.
Geographically, the firm is intensifying overseas penetration, notably with North American releases of titles such as DanMachi and plans to extend into Asian and European markets. The pipeline includes six new titles, with a focus on periodic content updates to sustain revenue streams. Methodologically, the presentation relies on internal financial data and trend analysis of existing titles to inform forecasts, emphasizing operational efficiency and global expansion as key growth levers.