Advertising
Report
FY2022 Second Quarter Financial Results
The FY2022 second‑quarter results show a net sales increase to ¥19.5 billion, up 12.4 % from the prior year and 5.8 % QoQ, driven by a strong launch of “That Time I Got Reincarnated as a Slime: ISEKAI Memories.” Operating income rose to ¥2.5 billion, a 1.6‑fold jump from the previous year’s loss of ¥0.83 billion, largely due to higher game sales offsetting increased variable costs such as commission fees. EBITDA reached ¥2.7 billion, up 1.05 billion QoQ and 0.86 billion YoY, reflecting improved margin management. Key operational highlights include the expansion of the Metaverse platform REALITY with new video‑chat features and 12‑language support, and the launch of a marketing SaaS, “aumo My Business,” which attracted 10,000 physical‑store clients. The Advertising and Media segment saw higher ad spend (¥0.99 billion) but also introduced tourism‑association collaborations to boost regional revitalization. Investment activities remained robust, with total assets under management at ¥66.9 billion and direct investment valuations rising to ¥45.6 billion, driven by new VC fund placements in Japan and the United States. The GREE LP Fund and CVC units achieved IRRs above 20 % in the growth phase, outperforming domestic VC benchmarks. Financially, total costs climbed to ¥16.99 billion, mainly due to higher commission and labor expenses, yet operating income growth outpaced cost increases. Shareholder returns were reinforced through a ¥32.7 billion stock‑repurchase program and a 62.5 million‑share cancellation, reducing the share base to 179.75 million. Overall, the quarter demonstrates successful new‑title performance, diversified revenue streams across entertainment, metaverse, and SaaS, and a solid investment portfolio, positioning the company for continued FY22 growth.
GREE
Report
Quarterly Transition by Business Segment: Japan
The quarterly transition analysis for Japan’s business segments presents detailed financial performance for FY2024 and FY2025, focusing on Media & IP, Internet Advertisement, Game, and Investment Development divisions. Sales figures reveal that the Internet Advertisement Business consistently leads with a FY2024 total of ¥434,612 million and a FY2025 total of ¥461,220 million. The Game Business shows the most volatility, peaking in Q2 FY2024 at ¥67,170 million before declining to ¥38,856 million in Q3. Media & IP sales remain relatively stable around ¥50–52 billion per quarter, while Investment Development remains a minor contributor with totals under ¥7 billion. Operating profit (OP) highlights divergent profitability across segments. The Game Business delivers the highest OP, reaching ¥31,055 million in Q1 FY2024 and sustaining strong quarterly results thereafter. Internet Advertisement maintains steady OP around ¥5–6 billion each quarter, whereas Media & IP oscillates between losses and modest gains, culminating in a FY2024 total OP of ¥8,262 million. Investment Development experiences significant swings, with a notable loss in Q2 FY2024 but a recovery to ¥1,756 million in Q4. Operating profit margins (OPM) excluding special incentives illustrate segment efficiency. Game Business achieves the highest margin, peaking at 33.5% in Q3 FY2024 and maintaining a FY2025 average of 28%. Internet Advertisement sustains margins around 5%, while Media & IP remains near break‑even, fluctuating between –1.6% and 5.8%. Investment Development shows extreme volatility, with a negative margin of –406.5% in Q2 FY2024 and a positive 33.5% in Q4, resulting in an overall FY2024 margin of 3.6%. The data cover the Japanese market over two fiscal years, with quarterly granularity and corrections applied as of May 15 2025. The analysis relies on internal financial statements, presenting a comprehensive view of segment performance and profitability trends.
CyberAgent
