Mobile

The briefing outlines GREE’s strategic outlook for the remainder of FY2021 and beyond, focusing on its core Game business, profitability trajectory, investment income sustainability, and short‑term financial expectations. GREE anticipates a medium‑to‑long‑term sales uptrend driven by the release of new game titles in FY2022 and subsequent years, while simultaneously strengthening operational capabilities for existing titles. Profitability is expected to broaden through the creation of more profitable business structures and favorable contractual terms, aligned with a strategy centered on Game engine development, intellectual property acquisition, and global expansion.

Investment income derives primarily from gains on venture‑capital partnerships in Japan and overseas, as well as the consolidation of previously unconsolidated subsidiary STRIVE Inc. The company notes that short‑term returns may fluctuate due to diversified investment portfolios, but medium‑to‑long‑term sustainability is projected. Planned allocation of these gains targets reinvestment in core businesses and shareholder returns.

Financially, GREE projects operating income for the fourth quarter of FY2021 at approximately ¥1.0 billion, reflecting confidence in its current revenue streams and cost management. The briefing covers Japan’s domestic market with implications for global expansion, covering the period up to FY2021 and projecting into FY2022. Methodological details are limited, but the focus remains on strategic investment, operational efficiency, and incremental revenue growth.

The briefing clarified that the quarter‑over‑quarter drop in sales and operating income for FY2021 Q2 stemmed mainly from a slowdown in coin consumption of the mobile title SINoALICE after its strong global launch, coupled with seasonal weakness in other flagship games. Management projected operating income for Q3 FY2021 at approximately ¥1.0 billion, driven largely by a new app‑game launch.

The impact of the COVID‑19 stay‑at‑home trend was deemed limited; while overall playtime rose in some segments, companywide earnings were not materially affected. Distribution of app games in China was described as meeting expectations, though profit sharing with local partners reduces the net contribution relative to in‑house titles, leaving no significant effect on consolidated earnings.

Real‑time communication services under the REALITY brand have experienced sustained growth since the spring state of emergency, and management anticipates continued expansion comparable to that seen in social networking platforms offering real‑time interactions.

Capital allocation plans emphasize reinvestment into business growth and maintaining adequate liquidity. Dividend policy targets a consolidated payout ratio of at least 20 % with a dividend‑on‑equity (DOE) ratio around 2 %. Share repurchases may be undertaken as circumstances allow. The briefing covered domestic and international markets, focusing on mobile gaming and online communication services over the 2021 fiscal year.

The briefing clarified GREE’s strategic focus on its Metaverse platform, REALITY, and financial outlook for the coming year. The company defined the Metaverse as a digital universe where users inhabit avatars to work and play, emphasizing its rapid growth driven by technology advances and heightened online interaction during the COVID‑19 pandemic. REALITY, launched globally six months prior to the briefing, is now available in 63 countries and territories, with strong reception in North America, Southeast Asia, Central and South America, and Russia. GREE highlighted the platform’s unique ability to livestream content with virtual avatars, a feature not offered by competitors, and outlined plans for further expansion through localized events, multilingual support, and extensive promotional activities.

Investment plans for REALITY are set at approximately ¥10 billion over the next two to three years, covering advertising, labor, and outsourcing costs. The company views this as a high‑potential business and aims to balance growth with cost efficiency. In its investment and incubation segment, GREE anticipates venture capital activities to provide consistent medium‑to‑long‑term income, targeting a return of at least 10 % despite short‑term volatility. For the first quarter of FY2022, GREE foresees a potential operating loss in the hundreds of millions of yen, attributed to increased development costs for new app games and upfront investments. The overall narrative positions REALITY as a central growth engine while acknowledging the financial risks associated with early‑stage expansion.

The briefing clarifies GREE’s strategic focus and financial outlook for the second quarter of FY2022. The company announces that “Heaven Burns Red” will launch on February 10, noting strong pre‑registration figures and fan enthusiasm. For the “REALITY” platform, GREE reports accelerated promotional efforts that have boosted North American sales per user; future plans emphasize continued marketing and feature development to position REALITY as a daily communication service. In the Investment and Incubation Business, unrealized gains on listed shares have fallen due to broader market declines, yet the firm maintains sizable gains and expects long‑term profitability despite short‑term exit timing effects.

Capital strategy is highlighted through a substantial share repurchase program aimed at sustaining an ROE above 10 % and maintaining listing status in the Tokyo Stock Exchange’s prime section, even as share‑outstanding ratios approach regulatory thresholds. The “Money held in trust” line item is explained as short‑term, low‑risk investments treated similarly to cash. Finally, the company projects third‑quarter operating income for its Internet and Entertainment segment between ¥1.5 billion and just under ¥2.0 billion, driven by contributions from new titles.

Overall, the presentation outlines GREE’s product rollout plans, market expansion tactics, investment portfolio resilience, capital allocation priorities, and near‑term earnings expectations within the broader context of a recovering market environment.

The briefing clarifies GREE’s operational status and financial outlook for FY2022 third quarter, focusing on game releases, overseas distribution, user acquisition, and investment performance. Heaven Burns Red is positioned as a long‑term growth engine; the company plans to add content and implement creative training cycles, leveraging experience from titles like Another Eden. Echoes of Mana, launched April 27, 2022, has already met key performance indicators and will receive ongoing promotional support. Simultaneous global releases of That Time I Got Reincarnated as a Slime: ISEKAI Memories and Echoes of Mana have performed strongly overseas, prompting consideration of further international launches for other titles.

User acquisition and engagement for the mobile title REALITY have improved through sustained promotional activities in Japan and abroad, with notable success in North America via targeted events and functional enhancements. Financially, the company experienced a cumulative loss for the third quarter; this is attributed to a decline in the Investment and Incubation Business relative to FY2021, despite steady growth in Internet and Entertainment operations driven by new hit titles. The Investment segment’s volatility over short periods is noted as a contributing factor.

Looking ahead to the fourth quarter, GREE projects operating income in the Internet and Entertainment Business between ¥2.5 billion and just under ¥3.0 billion, assuming continued strong sales of Heaven Burns Red and stable market trends for new releases. The outlook remains contingent on title performance dynamics.

The briefing focused on GREE’s financial performance and strategic initiatives for FY2022, highlighting the strong contribution of new titles such as Heaven Burns Red and anniversary events to quarter‑over‑quarter earnings growth. The company attributed this success to a “release blitz” strategy launched in FY2017, which has since strengthened marketing, game quality through an engine‑centric approach, and content volume at launch. These measures have enabled the company to exceed fan expectations, generate significant social media buzz, and deliver high‑quality 3D rendering.

Investment in the Metaverse Business is progressing as planned, with a ¥10 billion allocation over two to three years and the business reaching breakeven. GREE intends to continue expanding its global user base and sales through further investment. The DX Business is being restructured to integrate marketing support services, creating a data‑driven platform that offers comprehensive digital transformation solutions to corporate clients. Meanwhile, the Manga Business is introduced as part of a broader media diversification strategy aimed at leveraging first‑party IP across games, anime, and manga to broaden user engagement channels.

The Investment and Incubation Business is expected to provide stable medium‑to‑long‑term earnings, with a target return on investment of 10 % or higher. For FY2023 Q1, operating income in the Internet and Entertainment segment is projected at ¥1.0–¥1.5 billion, reflecting a decline from the strong performance of new titles and anniversary events in FY2022 while anticipating continued system‑strengthening investments.

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.

The briefing outlines GREE’s performance and strategic outlook for the second quarter of FY2023, focusing on its Internet and Entertainment Business. Sales in the Game and Anime segment remained steady for “Heaven Burns Red,” though revenue tapered after the half‑year anniversary promotion; growth continued in Metaverse and Commerce & DX divisions. The company anticipates a one‑year anniversary event for the Japanese version of Heaven Burns Red and imminent releases in Korean and traditional Chinese, with pre‑registrations already generating significant buzz at local game shows. The Anime Business is positioned to secure and diversify intellectual property, enabling in‑house development of game‑to‑anime adaptations that can enhance user engagement and revenue.

Metaverse operations, branded as REALITY, have surpassed the break‑even point and achieved profitability. Over the past six months, overseas sales grew markedly, with North America leading after Japan, followed by Indonesia and Thailand. User demographics skew female and Generation Z, with a strong preference for private communication features. Monetization streams—live‑stream gifting, avatar sales, and in‑game purchases—are expanding consistently across regions.

Advertising spend is expected to rise in the third quarter, driven by anniversary events and new language releases for Heaven Burns Red, as well as intensified promotion of REALITY. Operating income projections for the Internet and Entertainment Business in Q3 FY2023 range from ¥1.0 billion to ¥1.5 billion, contingent on the performance of the Korean and Chinese versions.

The Investment and Incubation Business remains cautious, with potential short‑term losses anticipated due to market conditions. However, diversified investment timing and targets are projected to stabilize contributions over the medium‑to‑long term.

The briefing clarifies GREE’s financial outlook and strategic positioning for FY2023, focusing on the third quarter results. It reports that overseas releases of “Heaven Burns Red” have begun to generate sales consistent with market size, though a precise forecast remains unavailable due to the short time frame. In the Internet and Entertainment segment, operating income for Q4 is projected at approximately ¥1.5 billion, reflecting a decline from the Japanese version’s anniversary event contributions but offset by overseas expansion.

The company highlights its metaverse platform, REALITY, as a key growth driver. REALITY boasts over 10 million global users, with daily engagement rates that surpass many competitors, and has achieved steady monetization through avatar sales and livestreaming. GREE plans to enhance the platform with generative AI, enabling user‑generated 3D content such as avatars and world elements, mirroring approaches seen in other metaverse services.

For the Investment and Incubation Business, Q4 operating income is expected to reach roughly ¥0.5 billion, largely supported by dividend receipts from corporate venture capital funds. Overall, the briefing underscores GREE’s focus on expanding overseas markets, monetizing its metaverse ecosystem, and leveraging AI to sustain growth across its entertainment and investment portfolios.

The briefing clarified GREE’s strategic focus and financial outlook for FY2024. Development activities remain fluid, with no concrete release schedule disclosed due to external IP dependencies and shifting priorities. In the Metaverse platform segment, the REALITY service showed robust growth in the first quarter, driven by Japan and North America. Monetization diversified across avatars and gifting, contributing to earnings from the platform business. The DX Business continues to expand its client base, split between game and entertainment firms—leveraging GREE’s expertise in advertising, customer service, and quality assurance—and national‑scale food and beauty companies that benefit from digital marketing support. Growth in the latter segment is noted to outpace industry averages.

Financial projections for the second quarter exclude investment activities, estimating consolidated operating income around ¥0.5 billion. Year‑end guidance remains unchanged from the August 3, 2023 announcement, targeting consolidated operating income between ¥4.0 and ¥5.0 billion for FY2024, with no significant impact expected from new game or anime titles or the investment arm. The company’s emphasis on platform monetization and diversified DX services underpins its confidence in maintaining steady earnings growth amid a competitive digital landscape.

The briefing clarified GREE’s strategic priorities and financial outlook for the second quarter of FY2024. Recent events for Heaven Burns Red celebrated its two‑year anniversary, generating strong performance and reinforcing the company’s focus on successful titles. The decision to discontinue support for SINoALICE was framed as a timing choice aligned with the broader development trajectory of GREE’s Game and Anime Business, indicating a shift toward more promising projects.

Development activities continue to progress smoothly, though specific release dates remain undisclosed. In the VTuber segment, GREE plans aggressive investment to expand its talent pool and enhance competitiveness through its talent agencies. Talent auditions are evaluated on past streaming performance, character fit with the existing portfolio, and audience engagement capabilities.

Investment business conditions are described as improving; after a period of inflated valuations—particularly in the United States—market values have stabilized, creating a favorable environment for new investments. GREE’s established network in gaming and metaverse sectors positions it to accumulate additional investment assets.

Financial projections for the third quarter exclude the Investment Business, estimating consolidated operating income of approximately ¥1.5 billion. For the full fiscal year FY2024, the company forecasts consolidated operating income of roughly ¥5.0 billion under the same exclusion. These figures suggest a steady growth trajectory driven by core gaming, anime, and VTuber operations while maintaining a cautious stance on investment activities.

The briefing clarified GREE’s strategic focus for FY2025 first‑quarter results, emphasizing both gaming and investment operations. In the gaming segment, the company confirmed that advance registrations for the English version of “Heaven Burns Red” are strong and that distribution will be handled by Yostar Games, whose track record in expanding English‑speaking fan communities is expected to generate significant buzz. GREE highlighted ongoing community building efforts prior to launch, underscoring a proactive marketing approach.

Regarding the investment business, management acknowledged that valuation‑loss risk remains comparable to Q1 FY2025 levels. The primary driver of past losses was large investments in funds nearing the end of their operating periods; however, diversification and limited exposure to such funds mitigate long‑term impact. GREE maintains that while short‑term volatility may persist, medium‑to‑long‑term earnings should remain stable as funds mature and yield dividends or asset sales. The company reiterated its commitment to investing in GREE‑Group managed funds, including GREE Ventures, and expects related risks to surface only after several years.

Overall, the briefing presented a balanced outlook: aggressive growth in the gaming arm through strategic partnerships and community engagement, coupled with cautious yet steady investment practices aimed at preserving earnings stability amid inherent valuation risks.