Japan
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
Summary of Main Supplementary Explanations Questions and Answers: FY2023 First Quarter GREE Results Briefing
The briefing outlines GREE’s strategic outlook and performance expectations for FY2023, focusing on its core gaming, metaverse, and investment activities. The company reports a stable user base for the flagship title “Heaven Burns Red,” anticipating steady earnings while continuing to develop new content. Other major titles are expected to experience a typical first‑quarter slowdown after a fourth‑quarter peak, with the company preparing anniversary events and content releases to sustain engagement through late 2022 and beyond. GREE plans to replicate the success of “Heaven Burns Red” by applying lessons learned in development and operations to future titles, emphasizing expressive design and multifaceted marketing know‑how. In the metaverse segment, profitability has reached breakeven; the firm is expanding its user base for REALITY and reinvesting profits into promotional activities to support further growth. The investment and incubation arm faces a cautious outlook for FY2023, with potential quarterly losses if exit distributions remain low despite some expected payouts. For the Internet and Entertainment Business, operating income for Q2 FY2023 is projected between ¥1.0 billion and ¥1.5 billion, reflecting moderate growth expectations amid market uncertainties. Overall, GREE’s strategy centers on leveraging proven game development expertise, expanding metaverse user engagement, and managing investment risks while targeting modest income growth in its entertainment portfolio.
GREE
