Report
FY2019 Third Quarter Financial Results
The FY2019 third‑quarter results demonstrate a solid operating performance driven largely by overseas distribution of first‑party IP and cost efficiencies in existing titles. Net sales reached ¥17.6 billion, slightly below the forecasted ¥18 billion range but up 0.23 % YoY, while operating income rose to ¥1.6 billion, surpassing the forecasted ¥1.5 billion and marking a 0.59 % QoQ increase. EBITDA stood at ¥1.8 billion, reflecting a 0.60 % QoQ gain and a 1.35 % YoY decline, largely attributable to one‑off events that added ¥390 million in sales and ¥460 million in income. Adjusted figures, excluding these events, show net sales of ¥17.25 billion and operating income of ¥1.09 billion, underscoring the underlying strength. Key drivers include a successful launch of “Another Eden” in eight overseas markets, which contributed significantly to paid‑service sales (¥13.65 billion), and a global simultaneous collaboration event for “DanMachi” that boosted user engagement. The company also advanced its mobile pipeline, with five titles in development and pre‑registrations for “AFTERLOST” underway. Cost management improved markedly, with total costs falling ¥700 million QoQ to ¥16.1 billion, driven by reduced outsourcing and streamlined operations. Geographically, the focus remains on Japan with expanding presence in North America, Europe, and Asia‑Pacific through self‑distribution and partner agreements. The 4Q forecast projects net sales of ¥17–18 billion and operating income of ¥1.0–1.5 billion, anticipating continued momentum from anniversary events and new title releases. The company’s workforce totals 1,693 employees across game‑entertainment, advertising, and other businesses.
GREE
Report
FY2023 First Quarter Financial Results Briefing
GREE, Inc. reported FY2023 first‑quarter results with net sales of ¥16.6 billion and operating income of ¥1.58 billion, driven largely by the Internet and Entertainment segment. The flagship game “Heaven Burns Red” continued to outperform expectations, sustaining high sales rankings and generating strong variable revenue; however, quarter‑on‑quarter sales declined after a peak in FY22 due to the absence of new releases and anniversary events. Variable costs fell, while fixed costs remained stable, resulting in a total cost reduction of ¥2.0 billion to ¥15.0 billion. The Metaverse business, centered on the global platform REALITY, achieved a milestone of 10 million downloads across 63 countries. GREE plans to expand content and communication features—such as new gaming titles, reaction stickers, and chat GIFs—to increase user engagement and monetize the platform further. The Commerce and DX segment continued to grow its SaaS offering, aumo My Business, with rising media users and clients. Investment and Incubation activities saw an AUM increase to ¥80 billion, driven by asset revaluation and new investments in three VC funds (Japan and the U.S.) and 14 startups. Despite a decline in listed‑stock valuations, unlisted holdings rose, improving overall portfolio value and IRR, particularly in the growth phase. Geographically, GREE’s operations span Japan and international markets, with a focus on expanding overseas reach for both gaming and Metaverse services. The company anticipates stable income in FY23, with a projected operating income of ¥1.0–¥1.5 billion for the second quarter, while maintaining aggressive investment in Metaverse development.
GREE
