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Summary of main supplementary explanations questions and answers at the FY2026 First Quarter GREE Holdings, Inc. results briefing held on November 6, 2025
GREE Holdings’ FY2026 first‑quarter briefing clarified strategic priorities across its game, VTuber, and investment divisions. The company emphasized a shift toward an in‑house development model for console titles while still leveraging external contractors to bridge current expertise gaps. In the mobile game segment, outside‑app payment methods have been fully deployed across all major titles and are contributing positively to profitability; the VTuber platform has similarly expanded its outside‑app transactions, boosting operating margins. The firm acknowledges a structural decline in earnings from new smartphone releases but plans to sustain revenue by focusing on long‑term engagement features and continuous hit title launches, particularly within the RPG genre.
Market outlooks reveal a plateau in smartphone installs but growing potential through high‑value IP and outside‑app monetization. Console gaming is viewed as a long‑term investment, with an emphasis on cultivating enduring IP series. The VTuber market is still expanding globally, especially overseas, and the company projects full‑year profitability for its VTuber production arm by FY2027 as higher‑margin merchandise and live events offset earlier talent acquisition costs.
Exit strategies for the investment business have shifted from IPOs to M&A, reflecting broader market conditions. Generative AI is being integrated across game development, VTuber content creation, and digital transformation services to enhance efficiency and service quality, though its direct earnings impact remains difficult to quantify. Overall, GREE aims to strengthen core competencies, diversify revenue streams, and adapt to evolving market dynamics while pursuing sustainable growth.
- GREE is transitioning to an in-house development model for console titles, utilizing external contractors to address current expertise gaps while focusing on long-term IP cultivation.
- Outside-app payment methods have been fully implemented across all major mobile titles and the VTuber platform, directly contributing to improved operating margins.
- The VTuber production arm is projected to reach full-year profitability by FY2027 as high-margin merchandise and live events offset initial talent acquisition costs.
- The company is shifting its investment business exit strategy from IPOs to M&A to better align with current market conditions.
- Generative AI is being integrated into game development, VTuber content creation, and digital transformation services to improve operational efficiency and service quality.
Annual Report and Consolidated Financial Statements 2023
ANNUAL R THE YEAR ENDED FINANCIAL STATEMENTS FOR THE YEAR ENDED Business model 10 Chief Executive’s review 15 Chief Financial Officer’s review 17 Environmental, social and governance (ESG) 19 Principal risks and uncertainties 20 Corporate Governance 25 Board of Directors 25 Corporate governance report ...
- Revenue generated from own-IP (1st and 2nd party games) decreased to 65% of gaming revenues in 2023, down from 77% in 2022, due to changes in the portfolio mix. Conversely, revenues from the back-catalogue increased to 92% of total revenues in 2023 (up from 80% in 2022), driven by successful new releases like "I am Future" (Early Access) and "Punch Club 2".
- The company maintains a strong social media presence with over 1.7 million followers across platforms by the end of 2023, placing it competitively with other gaming companies like Devolver Digital (1.1m) and Paradox Interactive (0.9m). They also boast c.5 billion YouTube views and over 10,000 verified influencers.
- The top 5 games generated 46.8% of total revenues in 2023 (up from 44.8% in 2022), and the top 10 games generated 65.44% (down from 66.3% in 2022), indicating broad diversification across audiences, genres, and technologies.
- The company incurred $3.5 million in legal settlement fees in 2023 and continues to face costs related to the Ukraine/Russia conflict, which are now included in operating expenses, with potential for future charges.
- The company mitigates risks associated with early-stage developer engagement by providing milestone-based funding, acquiring IP as part of agreements, and adjusting budgets using data-driven approaches. They also intensify audience validation through playtests and demos to align with consumer trends.
Annual Report 2012: 11 bit studios S.A.
I. PISMO ZARZĄDU ............................................................................................................. 3 II. WYBRANE JEDNOSTKOWE DANE FINANSOWE ZAWIERAJĄCE PODSTAWOWE POZYCJE ROCZNEGO SPRAWOZDANIA FINANSOWEGO WRAZ Z DANYMI PORÓWNYWALNYMI ................ 4 III. SPRAWOZDANIE FINANSOWE ZA ROK 2012 11 BIT STUDIOS S.A. ........................................ 4 IV. SPRAWOZDANIE ZARZĄDU Z DZIAŁALNOŚCI SPÓŁKI W ROKU 2012....................................
- 11 bit studios S.A. reported a net profit of 1,344,700.33 PLN in 2012, a slight increase from 1,292,777.32 PLN in 2011.
- The company's equity significantly increased from 2,560,977.91 PLN in 2011 to 6,913,931.74 PLN in 2012, primarily due to an increase in share capital and reserve capital.
- Share capital increased from 187,076.10 PLN to 221,719.90 PLN in 2012 through the issuance of Series D and E shares, with nominal values of 0.10 PLN per share.
- Revenue from sales in 2012 totaled 3,346,593.68 PLN, with 95.5% of this revenue coming from foreign sales.
- Operating costs amounted to 3,007,118.43 PLN in 2012, with salaries constituting 59.7% and external services 31.9% of these costs.
Consolidated Annual Report 2016: 11 bit studios
Kapitat PISMO ZARZĄDU z nadwyzki rezerwowy Przypadajace Przypadajace Kapitat wartosci Kapitat z tytutu z przeliczenia Zyski akcjonariuszom dziatom podstawowy emisyjnej jednostek Warszawa, 30 marca 2017 roku ponad wartosc zapasowy ptatnosci w zagranicznych i zatrzymane dominujacej kontro nominal...
- 11 bit studios S.A. achieved its best financial year ever in 2016, with revenues reaching PLN 27 million, a 16.6% increase from 2015, and net profit growing by 11.8% to PLN 12.9 million, despite a one-time non-cash write-off of PLN 0.64 million from the Games Republic platform.
- The company's operational profit increased by nearly 3% to PLN 14.1 million in 2016, and it held PLN 29.11 million in cash by the end of December 2016, indicating strong financial health.
- The game "This War of Mine" (TWoM), released in autumn 2014, has generated over PLN 60 million in cumulative revenue, establishing 11 bit studios' brand recognition and financial stability.
- 11 bit studios S.A. is focusing on developing PC games using its proprietary engine, with "Frostpunk" being the main project, scheduled for release in the second half of 2017, with a significantly larger production and marketing budget than TWoM.
- The company's primary activities are the production and sale of multi-platform video games and global digital distribution of video games, with its shares publicly traded since its founding in 2009.
Raport Roczny 11 bit studios: 2022
RAPORT ROCZNY 11 BIT STUDIOS ZA 2022 ROK (wszystkie kwoty podane są w złotych o ile nie podano inaczej) SZANOWNI AKCJONARIUSZE I INWESTORZY Serdecznie zapraszamy Państwa do lektury Raportu rocznego 11 bit studios S.A. za rok 2022. Był to dla nas, z uwagi na trudne otoczenie makroekonomiczne (spowolnienie gospodarcze, wysoka inflacja) i geopolityczne (wojna na Ukrainie), bardzo intensywny, wymagający rok.
- 11 bit studios S.A. aims to be an "alternative to the mainstream" in gaming, focusing on high-quality, distinctive titles with increasing production and marketing budgets, targeting one new proprietary game release annually in the medium term.
- The company plans to expand its publishing activities, releasing 3-4 titles from external studios annually in the medium term, alongside its own games, to stabilize financial results.
- 11 bit studios S.A. is developing three internal development teams to work on three parallel titles, aiming for releases every few quarters and optimizing resource utilization.
- The company's functional and reporting currency is the Polish Złoty, and it recognizes revenue from PC/console and mobile games after platform deductions, while acting as a principal for games published from external developers.
- In 2022, the company's net cash flow from operating activities was 32,931,559 PLN, a decrease from 40,942,289 PLN in 2021, despite a lower profit for the year (22,889,816 PLN in 2022 vs. 28,685,582 PLN in 2021).
Raport Roczny 2021: 11 bit studios S.A.
RAPORT ROCZNY 11 BIT STUDIOS S.A. ZA 2021ROK Szanowni Akcjonariusze i Inwestorzy Serdecznie zapraszamy Was do lektury Raportu rocznego 11 bit studios S.A. za 2021 rok. Wyniki finansowe wypracowane w tym okresie, z których jesteśmy bardzo zadowoleni dowodzą, że Spółka bez perturbacji przeszła przez ten trudny od strony operacyjnej, z uwagi na COVID-owe ograniczenia i obostrzenia rok. W 2021 roku 11 bit studios S.A miało 70,12 mln PLN przychodów ze sprzedaży. Wynik EBITDA sięgnął 38,95 mln PLN.
- 11 bit studios S.A.'s revenue decreased by 19.49% in 2021, falling to 70,122,691 PLN from 87,101,774 PLN in 2020.
- The primary source of revenue for 11 bit studios S.A. in 2021 was the sale of its own games and games published for external developers, with Valve Corporation (Steam) being the main recipient, generating over 10% of total revenue.
- The USA was the dominant geographic market for 11 bit studios S.A. in 2021, accounting for 75.95% of external customer revenue, followed by Japan at 13.75%.
- Investment in unfinished development work significantly increased in 2021, rising to 52,926,024 PLN from 25,545,704 PLN in 2020.
- 11 bit studios S.A. does not currently hold its own shares and has incentive programs for key employees and management that could alter shareholder proportions in the future.
Annual Report of 11 bit studios S.A.: 2023
ANNUAL REPORT OF 11 BIT STUDIOS S.A. FOR 2023 (all amounts in PLN unless stated otherwise) DEAR SHAREHOLDERS AND INVESTORS, Please be invited to read 11 bit studios S.A.’s 2023 This past year has brought significant achievements in both sales and game production. We launched a number of major titles that had been in development for some time.
- 11 bit studios S.A. generated PLN 21,147,406 in cash flows from operating activities in 2023, a 37.97% decrease from 2022, despite no new game releases significantly contributing to financial performance. This was driven by strong sales of older titles like Frostpunk, Moonlighter, Children of Morta, This War of Mine, and The Invincible.
- The company significantly increased capital expenditure in 2023, spending PLN 58,813,599 on property, plant, and equipment and intangible assets (up from PLN 45,679,530 in 2022), primarily for new proprietary games (Frostpunk 2, The Alters, Project 8) and publishing division games.
- Contract liabilities surged to PLN 13,355,194 as of December 31, 2023, from PLN 1,128,700 in 2022, representing advance payments from trading partners, including Microsoft Corporation, for future game sales, payable within 24 months.
- The global gaming industry is projected to return to growth, with Newzoo forecasting spending of USD 205.4 billion by 2026 (11.6% more than 2023) and the number of gamers reaching 3.675 billion by 2026 (a CAGR of 3.7% from 2021-2026).
- 11 bit studios S.A. aims to fund its development and publishing activities internally for at least the next few quarters, reducing reliance on external funding or funds from trading partners.
Quarterly Report of 11 Bit Studios S.A.: Q1 2019
portfolio of proprietary games) is expected to help stabilise the Company's financial results, which in the video games industry are typically highly volatile. The Company's revenue sources should also be considerably impacted by further development of its publishing division (11 bit publishing), which in 2018, driven primarily by the very successful release of Moonlighter, contributed 18% of the LETTER FROM THE MANAGEMENT BOARD ...
- 11 bit studios S.A. experienced a significant revenue increase of nearly 632% in Q1 2019 compared to Q1 2018, reaching PLN 14,183,796, primarily driven by strong sales of Frostpunk and This War of Mine.
- Operating expenses rose by 267.5% to PLN 8,524,924 in Q1 2019 (from PLN 3,186,555 in Q1 2018), with major items being salaries and wages (PLN 3,306,961), services (PLN 3,367,572, including Moonlighter royalties), and a non-cash provision for the Incentive Scheme (over PLN 2.05m).
- The company's publishing division, 11 bit publishing, contributed 18% of total revenue in 2018, largely due to the successful release of Moonlighter, and is expected to considerably impact future revenue.
- The porting of Beat Cop to PS4, Xbox One, Nintendo Switch, iOS, and Android, released in Q1 2019, proved profitable and supported the company's financial performance.
- 11 bit studios S.A. aims to stabilize its typically volatile financial results through its portfolio of proprietary games and plans to launch third-party games every quarter through its publishing arm.
Semi-Annual Report of 11 bit studios S.A.
Signed by: LETTER FROM THE MANAGEMENT BOARD Dear Shareholders and Investors Przemystaw Marszat Michat Drozdowski President of the Management Board Member of the Management Board Member of the Management Board Please be invited to read the Half-Year Report of 11 bit studios S.A. for the first half of 2019. During the period, we recorded over PLN 30.7m in revenue. Operating profit came in close to PLN 8.7m, with net profit above PLN 6.4m.
- 11 bit studios S.A. reported H1 2019 revenue of over PLN 30.7m, operating profit near PLN 8.7m, and net profit above PLN 6.4m, despite PLN 4.1m in non-cash provisions for their incentive scheme.
- The company's financial assets (cash, bank deposits, financial instruments, trade receivables) grew by PLN 13m from the end of 2018 to nearly PLN 84m by June 30, 2019, supported by almost PLN 20m in net cash flows from operating activities.
- Strong sales of Frostpunk and Moonlighter, both over a year old, along with continued contributions from This War of Mine, were the primary drivers of H1 2019 financial performance.
- Moonlighter, developed by Digital Sun, had over one million players by early Q3 2019, with Nintendo Switch becoming its leading sales platform since Q1 2019, especially after a successful Japanese launch.
- Children of Morta, a new publishing title, is set to launch for PCs on September 3, 2019, and consoles on October 15, 2019, with strong pre-release interest on Steam suggesting significant commercial potential.
Interim Financial Report: Nine Months Ended September 30th 2018
These interim condensed financial statements have been prepared on a historical cost basis. They do not include all information and disclosures required in full-year financial statements and should be read in conjunction with the Company's full-year financial statements for 2017, including notes, for the period of 12 months ended December 31st 2017, prepared in accordance with the IFRS as endorsed by the EU.
- 11 bit studios S.A. reported a net profit of PLN 28,518,085 for the nine months ended September 30th, 2018, a significant turnaround from a loss of PLN 559,317 in the same period of 2017.
- Revenue for the nine months ended September 30th, 2018, increased substantially to PLN 59,620,481, up from PLN 11,401,961 in the prior year, primarily driven by strong sales of "Frostpunk" and "Moonlighter" (released in Q2 2018) and continued sales of "This War of Mine."
- The company's cash and cash equivalents, including bank accounts, deposits, and bonds, totaled PLN 61,672,165 as of September 30th, 2018, a substantial increase from PLN 31,229,866 at the end of 2017.
- 11 bit studios S.A. plans to release "Children of Morta" in early 2019, further develop "Frostpunk," and continue monetizing "This War of Mine," "Moonlighter," and "Beat Cop," with "TWoM: Stories – The Last Broadcast" and a Nintendo Switch version of "TWoM" released in November 2018.
- The company made a significant donation of PLN 648,755 to the War Child Foundation in the reporting period, continuing its long-standing support for the charity.
Interim Financial Report: Nine Months Ended September 30th 2019
These interim condensed financial statements have been prepared on a historical cost basis. They do not include all information and disclosures required in full-year financial statements and should be read in conjunction with the Company's full-year financial statements for 2018, including notes, for the period of 12 months ended December 31st 2018, prepared in accordance with the IFRS as endorsed by the EU.
- 11 bit studios S.A. reported revenue of PLN 49,430,023 for the first nine months of 2019, a 17.09% decrease year-on-year.
- Basic earnings per share significantly dropped from PLN 12.47 in the nine months ended September 30, 2018, to PLN 4.38 in the same period of 2019.
- The company is actively developing "Projekt 10" and aims to release one proprietary game annually, while its publishing division plans for three to four external game debuts each year.
- Moonlighter and Children of Morta (PC version) were financial successes, boosting the company's position as a global game publisher; Moonlighter sales were particularly strong on Nintendo Switch, especially in Japan.
- 11 bit studios S.A. is expanding its workforce, projecting approximately 140 employees by the end of 2019 and potentially 180-200 in 2020, coinciding with a move to new offices in Warsaw with space for up to 300 employees.
11 bit studios — Quarterly Report Q1 2020: Letter from the CEO
11 bit studios S.A. reported a record‑breaking first quarter of 2020, with revenue surpassing PLN 30.52 million and EBITDA reaching PLN 19.61 million, both up 114.3% and 168.3% year‑on‑year respectively. Net profit climbed nearly PLN 14.51 million, a 226.9% increase, though non‑cash provisions related to the 2017–2019 Incentive Scheme reduced the figure by more than PLN 2.05 million; the company elected to defer IP Box tax relief until the annual return. The surge was driven largely by the launch of Frostpunk’s second paid DLC, “The Last Autumn,” on 21 January 2020, which not only boosted DLC sales but also lifted demand for the base game. Combined revenue from Frostpunk and its DLCs exceeded PLN 100 million between April 2018 and March 2020, surpassing the cumulative sales of This War of Mine. Publishing titles Moonlighter and Children of Morta contributed 24% of total revenue in the quarter.
Operating cash flow exceeded PLN 24.3 million, allowing total financial assets to cross the PLN 100 million threshold for the first time. The company plans to expand its workforce from 140 to 190–200 employees by year‑end, focusing on new projects under development (Projekt 8, 9, and 10) and a growing publishing portfolio that now includes three promising titles. Operations continue amid COVID‑19 restrictions, with the company relocating to a new Warsaw office that supports its scaling ambitions. The report covers Poland‑based activities for Q1 2020, highlighting strong performance across development and publishing segments.
- 11 bit studios achieved record Q1 2020 financial results, with revenue reaching PLN 30.52 million (up 114.3% YoY) and net profit rising 226.9% to PLN 14.51 million.
- The launch of the 'The Last Autumn' DLC for Frostpunk on 21 January 2020 served as the primary growth driver, boosting both DLC and base game sales.
- Frostpunk and its associated DLCs generated over PLN 100 million in revenue between April 2018 and March 2020, officially surpassing the cumulative lifetime sales of This War of Mine.
- Total financial assets exceeded the PLN 100 million threshold for the first time, supported by an operating cash flow of over PLN 24.3 million.
- The company is scaling its workforce from 140 to 190–200 employees by the end of 2020 to support three new internal projects (Projekt 8, 9, and 10) and an expanding publishing portfolio.