GREE

Fiscal year 2022 concluded with net sales of ¥74.9 billion and operating income of ¥11.5 billion, representing year-over-year growth primarily fueled by the success of major titles like Heaven Burns Red. While the Game Business drove top-line performance, overall net income decreased to ¥10.1 billion as a result of lower investment-related gains compared to the prior year. The company maintains a robust financial foundation, ending the period with ¥116.7 billion in total assets and a net cash position of ¥46.6 billion, supported by a stable workforce of over 1,600 employees.

Strategic priorities for the upcoming fiscal year emphasize global expansion and the diversification of digital services. The Metaverse segment is positioned for aggressive growth through the REALITY platform, which is transitioning into a corporate service provider via its "World" offerings. Simultaneously, the Commerce and DX segment is scaling its SaaS marketing capabilities, with the aumo My Business service now reaching over 30,000 participating locations. Although a short-term profit decline is anticipated in fiscal year 2023 following the peak performance of recent hit titles, the long-term objective remains a return on equity of 10% or higher.

The Investment and Incubation segment continues to serve as a critical pillar of value, managing a portfolio of 28 venture capital funds and 34 startups with total assets under management reaching ¥71.6 billion. This segment provides high internal rates of return and a valuation of ¥31.4 billion in operational investment securities. By integrating these investment returns with global IP distribution in the Game and Anime sectors, the organization aims to achieve discontinuous growth and solidify its presence across the international digital entertainment and marketing landscapes.

The fiscal year 2022 fourth-quarter results for GREE highlight a period of significant growth driven by the successful launch of Heaven Burns Red and strong performance from anniversary events in mainstay titles. This success is attributed to a long-term strategy initiated in 2017 to enhance development and operational capabilities. Key factors contributing to recent hit titles include strengthened marketing that exceeds fan expectations via social media, improved creative quality through a dedicated engine strategy focusing on 3D rendering, and the delivery of high-volume content at launch to satisfy passionate user bases.

The strategic focus extends across three primary pillars: Games and Anime, Metaverse, and Commerce and DX. The Metaverse business is currently meeting investment targets, with approximately 10 billion yen allocated over a three-year period, and has successfully reached a break-even point. In the DX sector, the company has restructured its corporate marketing services into a unified business unit to leverage shared databases and provide comprehensive digital transformation support. Furthermore, a new entry into the Manga business aims to diversify the media portfolio, allowing for multifaceted development of first-party intellectual property across games, anime, and print.

Financial outlooks remain stable but cautious for the upcoming period. While the Investment and Incubation business is expected to maintain a long-term return on investment of 10% or higher, the Internet and Entertainment segment anticipates a quarter-on-quarter decline in operating income for the first quarter of fiscal year 2023. This projected decrease to between 1.0 billion and 1.5 billion yen is due to a reactive decline following the exceptional fourth-quarter performance and planned investments into system enhancements designed to secure future profitability.

GREE’s financial results for the third quarter of fiscal year 2022 report net sales of ¥20.8 billion and an operating income of ¥3.6 billion. These figures represent a quarter-on-quarter increase driven primarily by the Internet and Entertainment segment, which overcame significant upfront investments in new titles to deliver ¥3.1 billion in operating income. The Investment and Incubation business also provided a stable contribution of ¥0.4 billion to the overall profit.

The primary driver of growth during this period was the successful launch of Heaven Burns Red in February 2022, which achieved a number-one sales ranking. While the company engaged in aggressive promotional spending and experienced higher fixed costs due to office relocation, these were offset by strong game performance and a decrease in royalty-related variable costs. Beyond core gaming, the Metaverse business made progress through the REALITY platform by expanding global distribution and adding virtual "World" features. Additionally, the Advertising and Media segment saw a 70% increase in participating stores for its aumo My Business service.

The Investment and Incubation segment reported total assets under management of ¥71.4 billion, with a direct investment balance of ¥45.8 billion. The company continues to see high unrealized value in its venture capital holdings across Japan and the United States. Looking ahead, the company expects continued growth in its Internet and Entertainment business for the remainder of the fiscal year, though it anticipates a year-on-year decline in investment-related gains compared to the exceptionally strong performance of the previous year. A dividend of ¥11 per share is planned, maintaining a policy of at least a 20% consolidated payout ratio.

GREE’s financial results for the second quarter of fiscal year 2022 reflect significant growth driven by the successful launch of new intellectual property and strategic expansions in the metaverse and SaaS sectors. The company reported net sales of ¥19.5 billion and an operating income of ¥2.5 billion, representing a substantial quarter-over-quarter increase. This performance was primarily propelled by the Internet and Entertainment Business, specifically the strong debut of That Time I Got Reincarnated as a Slime: ISEKAI Memories, which achieved over 2 million downloads within two months of its October 2021 release.

The report highlights a diversified business model across four main pillars: Game, Metaverse, Advertising and Media, and Investment and Incubation. In the Metaverse segment, the REALITY platform expanded its global footprint by supporting 12 languages and introducing an eight-person avatar video chat feature. The Advertising and Media segment marked a strategic shift into the SaaS market with the launch of aumo My Business, a marketing tool for physical stores that quickly surpassed 10,000 participating locations. Meanwhile, the Investment and Incubation arm maintained a stable asset base with total assets under management of ¥66.9 billion, focusing on venture capital funds in Japan and the United States.

Financially, the period was characterized by increased variable costs, such as commission fees and advertising, which rose in tandem with higher game sales. The company also prioritized shareholder returns, completing a ¥32.7 billion stock repurchase program and cancelling approximately 25.8% of its issued shares. Looking forward, the company aims for sustained growth through a pipeline of two to three in-house game releases per year and the continued global expansion of its metaverse and media platforms.

GREE’s strategic focus for the second quarter of fiscal year 2022 centers on the expansion of its metaverse platform, the launch of high-profile gaming titles, and the stabilization of its investment portfolio. A primary driver for near-term growth is the release of Heaven Burns Red, which has garnered significant consumer interest through strong pre-registration numbers. This title is expected to contribute to a projected operating income for the Internet and Entertainment Business of between 1.5 billion and 2.0 billion yen in the third quarter. Simultaneously, the REALITY platform is experiencing global growth, particularly in North America, where sales per user have increased. Management intends to transition REALITY from a niche tool into a daily communication service through enhanced functionality and targeted international promotions.

The Investment and Incubation Business remains a core pillar of long-term profitability despite recent market volatility. While unrealized gains on listed shares saw a decline due to broader stock market trends, the company maintains a sizable portfolio of unrealized gains and anticipates stable returns over an extended horizon. Financial management strategies include the use of short-term money trusts for low-risk capital preservation, ensuring liquidity remains comparable to cash holdings while supporting ongoing operations.

Capital allocation and corporate governance are also prioritized as the company seeks to maintain its listing on the Prime Market of the Tokyo Stock Exchange. Following a period of earnings recovery after a fiscal 2021 bottom, a significant share repurchase program was executed to improve return on equity toward a 10% target. Although this buyback impacted the ratio of outstanding shares required for Prime Market standards, the company remains committed to the section and plans to address compliance requirements while prioritizing shareholder value. These actions reflect a broader effort to align capital efficiency with improving earnings momentum across the metaverse and gaming segments.

GREE’s financial results for the first quarter of fiscal year 2022, ending September 30, 2021, reflect a period of strategic transition and heavy investment in new growth pillars. The company reported net sales of ¥13.7 billion and an operating income of ¥1.6 billion. While these figures represent a slight decline compared to the previous quarter and the same period last year, the results were bolstered by the Investment and Incubation Business, which offset a temporary dip in the Internet and Entertainment segment.

The Internet and Entertainment Business saw a decrease in revenue following the conclusion of major anniversary events for flagship titles like Another Eden and SINoALICE. However, the company made significant progress in its game pipeline, launching That Time I Got Reincarnated as a Slime: ISEKAI Memories and initiating pre-registration for Heaven Burns Red. Simultaneously, the company is aggressively expanding its Metaverse Business through the REALITY app, which achieved global distribution and saw increased advertising investment to grow its international user base.

The Investment and Incubation Business remains a critical earnings pillar, with assets under management reaching approximately ¥67.0 billion. This segment contributed ¥1.1 billion in operating income during the quarter, driven by revaluations of startup investments and venture capital fund performance. The company’s total assets stood at ¥141.8 billion, supported by a strong cash position of ¥91.5 billion.

Looking ahead, the company aims for sales and profit growth through the stable operation of existing games and the release of two to three in-house developed titles annually. Management also emphasized shareholder returns, executing a stock repurchase program of up to 35 million shares. The overall strategy focuses on strengthening the three core pillars of gaming, the metaverse, and investment to ensure long-term stability and growth.

The strategic focus for the first quarter of fiscal year 2022 centers on the expansion of the REALITY platform and the stabilization of the Investment and Incubation Business. Management intends to maintain a consistent level of advertising investment for REALITY, adhering to a recovery standard that ensures marketing spend is recouped over a defined period. Beyond advertising, capital is being directed toward app development, specifically targeting labor and outsourcing costs to enhance platform functionality. This investment strategy aims to capitalize on the growing global audience for Japanese anime aesthetics, which serves as the primary differentiator for the platform in the emerging metaverse sector.

Competitive advantages are defined by the integration of social networking service functions with gaming elements within a stylized virtual environment. While the metaverse segment remains a high-growth priority, the Internet and Entertainment Business anticipates a second-quarter operating income in the range of several hundred million yen. This projection accounts for the revenue contributions of new game titles balanced against increased development and outsourcing expenditures required for upcoming releases.

The Investment and Incubation Business is positioned as a source of long-term stable income, though performance remains subject to quarterly volatility. Because returns are primarily derived from dividend distributions from venture capital funds, precise timing for income recognition is difficult to forecast. Despite this inherent unpredictability, the segment is expected to provide a meaningful contribution to the overall financial health of the organization as it navigates the transition toward metaverse-driven growth and diversified digital entertainment offerings.

GREE’s strategic focus for the 2022 fiscal year centers on the aggressive expansion of the Metaverse through its REALITY platform and the stabilization of its investment and incubation business. The Metaverse is defined as a next-generation internet space where avatars facilitate social interaction, work, and play, bridging the gap between physical and virtual realities. This sector has seen accelerated growth due to technological shifts and increased demand for digital communication during the COVID-19 pandemic. To capitalize on this momentum, the company plans to invest approximately ¥10 billion over the next two to three years, specifically targeting advertising, labor, and outsourcing to scale the platform globally.

The REALITY platform has already established a presence in 63 countries and territories, showing significant traction in North America, Southeast Asia, Central and South America, and Russia. Management attributes this success to a lack of direct global competitors offering similar avatar-based livestreaming services. Future growth strategies involve leveraging existing expertise in communication and gaming while implementing localized events and expanded language support. Despite this long-term optimism, the heavy upfront investment in the Metaverse and development costs for new mobile titles are expected to result in an operating loss of several hundred million yen for the first quarter of fiscal year 2022.

Beyond the Metaverse, the investment and incubation segment is positioned as a consistent contributor to medium-to-long-term income. While short-term returns may fluctuate due to the nature of venture capital, the company targets a consistent return of over 10%. This dual approach seeks to balance the high-growth potential of emerging virtual spaces with the steady financial contributions of a diversified investment portfolio, ensuring the company remains competitive as digital social interactions continue to evolve.

GREE achieved a significant financial turning point in fiscal year 2021, reporting net sales of ¥56.8 billion and operating income of ¥5.4 billion. This growth was largely propelled by the global expansion of the game business, highlighted by a 54% increase in overseas coin consumption. Despite a general downward trend in total coin consumption from 14.0 billion to 11.7 billion yen year-over-year—primarily due to fluctuations in smartphone app engagement—the company successfully strengthened its balance sheet. Total assets rose to ¥141.4 billion with a robust net cash position of ¥86.8 billion, supported by a strategic reduction in quarterly operating costs and a stabilized workforce of approximately 1,600 employees.

The corporate strategy centers on three primary pillars: the foundational game business, the scaling advertising and media sector, and the emerging Metaverse platform, REALITY. To ensure long-term sustainability, the company intends to release two to three in-house game titles annually while aggressively investing in Metaverse functionality, such as the "World" feature. Furthermore, the investment and incubation segment has proven highly effective, generating roughly ¥13 billion in cumulative profit. These diversified revenue streams are intended to provide a stable earnings base while the company pursues a target return on equity of 10% or higher.

Shareholder value remains a core priority, evidenced by a ¥9.9 billion stock repurchase and an increased dividend of ¥12.5 per share. By balancing aggressive investment in high-growth areas like the Metaverse with disciplined cost management in its traditional segments, the organization aims to transition from a period of stabilization to one of sustained global expansion. The focus for the upcoming period remains on strengthening international distribution and scaling vertical media portfolios to capitalize on shifting digital consumption patterns.

GREE’s financial results for the third quarter of fiscal year 2021 reflect a period of significant profitability growth driven by new product launches and rigorous cost management. The company reported net sales of ¥13.9 billion and an operating income of ¥1.7 billion, which surpassed internal forecasts. Net income reached ¥5.1 billion, bolstered by gains from investment fund operations. This performance represents a substantial quarter-on-quarter increase in operating income of ¥1.2 billion, attributed to the successful January 2021 launch of Assault Lily: Last Bullet and a strategic reduction in advertising and variable costs.

The operational scope centers on the Japanese mobile gaming market with expanding global distribution across North America, Europe, and Asia. The game business remains the primary revenue driver, supported by mainstay titles like Another Eden and SINoALICE. Beyond core gaming, the company is diversifying through its Live Entertainment segment, specifically the REALITY virtual distribution app, and its advertising and media platforms, aumo and LIMIA. The development pipeline remains active with multiple titles scheduled for 2021 release, including Heaven Burns Red and a third-party distributed title based on the That Time I Got Reincarnated as a Slime IP.

Financial stability is underscored by a robust balance sheet featuring ¥94 billion in cash and cash equivalents. The company has demonstrated a commitment to shareholder returns through a ¥12 billion stock repurchase program and a planned dividend of ¥11 per share. Despite a slight year-on-year decline in total net sales, the transition toward higher-margin internal IP and improved operational efficiency—evidenced by a reduction in consolidated headcount to 1,589—has strengthened the overall profit structure. Management maintains a positive outlook for the remainder of the fiscal year, expecting continued growth in operating and net income.

The FY2021 third-quarter financial results briefing for GREE highlights a strategic focus on stabilizing the game business while leveraging diversified investment income to fuel future growth. Management projects a positive sales trajectory over the medium-to-long term, driven by a robust pipeline of new mobile game titles scheduled for release in FY2022 and beyond. This growth strategy is underpinned by a commitment to operational excellence and a core development philosophy centered on game engines, intellectual property, and global expansion. By securing business deals with more favorable terms and refining internal structures, the organization aims to broaden its overall profitability margins within the competitive app market.

Financial performance for the period was significantly bolstered by investment activities, including gains from venture capital partnerships in Japan and overseas, as well as the consolidation of the corporate venture capital subsidiary STRIVE Inc. Additional revenue was generated through the sale of investment securities from unlisted companies. While these investment returns are subject to short-term volatility, the long-term outlook remains sustainable due to a diversified portfolio managed over extended periods. Capital derived from these investment gains is earmarked for reinvestment into core business operations and shareholder returns, maintaining a balanced approach to capital allocation.

Looking toward the immediate future, the outlook for the fourth quarter of FY2021 remains steady with an expected operating income of approximately 1.0 billion yen. This projection reflects a transition period as the company prepares for its upcoming release cycle. The overall strategy emphasizes a shift toward high-quality IP and global scalability to ensure that the game segment remains a primary engine for value creation alongside the increasingly influential investment arm.

GREE’s financial performance for the second quarter of fiscal year 2021 reflects a period of stabilization following previous growth surges. Revenue and profit experienced a quarter-on-quarter decline primarily due to the normalization of coin consumption for SINoALICE following its global launch phase, alongside seasonal performance fluctuations in other mainstay titles. Despite these headwinds, the company projected a recovery in the third quarter, anticipating an operating income of approximately 1.0 billion yen driven by the contribution of a new mobile application.

The geographic and operational scope of the business highlights a strategic focus on the Chinese market and the evolving metaverse space. While distribution of titles in China has met internal expectations, the profit-sharing model with local partners limits the impact on top-line sales compared to in-house developed titles. Consequently, these international ventures are not yet expected to significantly shift companywide earnings. Regarding the broader market environment, the stay-at-home trends associated with the COVID-19 pandemic resulted in increased gameplay time for some users but did not yield a material impact on overall financial results.

Growth strategy is increasingly centered on the REALITY platform, which has seen sustained demand for online communication and real-time social networking services since early 2020. Management intends to prioritize capital allocation toward business growth and maintaining cash reserves appropriate for the industry's volatility. Shareholder returns remain a secondary but consistent focus, with a policy targeting a consolidated dividend payout ratio of at least 20% and a dividend on equity ratio of approximately 2%, supplemented by opportunistic share repurchases. This approach balances aggressive investment in emerging digital communication platforms with disciplined financial management.