GREE

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Summary of Main Supplementary Explanations Questions and Answers: FY2021 First Quarter GREE Results Briefing

The briefing explains that first‑quarter FY2021 sales and operating income rose despite a divestiture of the 3Minute fashion commerce unit, which reduced Advertising and Media sales by several hundred million yen. Growth was driven mainly by the launch of SINoALICE’s global version on July 1, coupled with a reduction in fixed costs. One‑time expenses incurred in Q4 FY2020 were eliminated, and restructuring within Advertising and Media cut development costs for the Game business. Operating income is projected to remain stable in Q2 FY2021, with a forecasted range of ¥0.5 billion to just under ¥1.0 billion, reflecting a decline in SINoALICE momentum and an uptick in game development outlays. Fixed‑cost trends are expected to fluctuate by a few hundred million yen annually, with game development expenses projected between ¥7.5 billion and ¥8.5 billion. The Chinese version of DanMachi is performing as anticipated, contributing to earnings through a net‑level profit share with the local partner; however, its impact on overall profitability is modest. The Advertising and Media division aims to achieve profitability in FY2021, while the Live Entertainment segment shows a narrowing loss margin due to sales growth. Overall, the company’s restructuring and strategic releases have bolstered revenue and controlled costs, positioning it for steady profitability in the second quarter while maintaining a cautious outlook on development spending and partner‑shared titles.

market-analysis monetization mobile+2

GREE

Report

FY2017 Fourth Quarter Financial Results

FY2017 Fourth Quarter Financial Results & Net sales ¥65.4 billion, operating income ¥8.0 billion, EBITDA ¥10.1 ⁃ Created many hit titles in release blitz, achieved tur naround in game year ⁃ Leveraged operational capabilities to stabilize sales of long-running titles ⁃ Game operation business transactions reached around 10 billion coins FY17 ⁃ Focused on advertising and me dia businesses that use video as a key & Net sales ¥19.2 billion, operating income ¥2.4 bil...

market-analysis game-publishing monetization+3

GREE

Report

FY2025 First Quarter Financial Results

FY2025 First Quarter Financial Results FY25 1Q ◼ Net sales ¥12.9 billion, operating profit -¥0.1 billion, EBITDA -¥0.1 billion Financial Results ⁃ Although performance in the Investment Business was weak, results in the Game and Overview Anime Business, Metaverse Business, and DX Business surpassed expectations Game and ◼ Heaven Burns Red got off to a strong start in China Anime ...

market-analysis investment mobile+3

GREE

Report

FY2015 Third Quarter Financial Results

The quarterly report presents FY2015 third‑quarter results for a Japanese mobile gaming and platform company, highlighting a net sales decline of ¥22.0 billion (‑9.1 % YoY) driven by softer web‑game revenue, while operating income rose to ¥4.9 billion (up 3.8 % QoQ) through aggressive cost control, notably a ¥1.10 billion cut in advertising spend and a ¥0.92 billion reduction in fixed costs. EBITDA fell modestly to ¥6.01 billion, yet the operating margin improved by 2.7 percentage points to 22.3 %. The company maintains a robust balance sheet, with cash and equivalents at ¥74.6 billion and net debt reduced to ¥4.27 billion. A revised full‑year forecast projects net sales of ¥93.5 billion and operating income of ¥20.0 billion, reflecting expected stability in Q4 sales at ¥22.0 billion and continued investment in native‑game development while keeping advertising costs disciplined. The report details a strategic pivot toward native games, expanding Japan operations to 600 staff and 20 development lines, with new titles such as “LINE TOWER RISING” and “POITTO HERO” slated for Q4 releases. Overseas expansion plans include localized versions of long‑running U.S. titles in Europe and China. Operational metrics show a 10 % drop in overall coin consumption to 31.3 billion, with smartphone web‑game usage rising to 77 % of total consumption. Native‑game coin consumption fell 9 % to 9.5 billion, while web‑game consumption declined 11 % to 21.7 billion, largely due to weaker legacy titles. The company continues to leverage IP collaborations and event initiatives to sustain user engagement across its game portfolio. The document covers Japan, U.S., Europe, and China markets over FY2015, employing quarterly financial statements, cost‑structure analysis, headcount data, and KPI charts to support its performance narrative.

market-analysis investment marketing+2

GREE

Report

FY2023 Fourth Quarter Financial Results Briefing

GREE, Inc. reported FY2023 full‑year net sales of ¥75.4 billion and operating income of ¥12.5 billion, marking year‑on‑year growth across its diversified portfolio. The fourth quarter delivered ¥20.1 billion in sales and ¥5.0 billion in operating income, with the Investment Business providing a notable earnings boost while other segments performed near expectations. The company restructured its reporting from two to four business segments—Game and Anime, Metaverse, DX, and Commerce—to better reflect expanding domains. Game and Anime sales were slightly weakened by a post‑anniversary dip in Heaven Burns Red, yet overall profitability remained strong due to reduced advertising costs and investment contributions. Metaverse operations, split into platform, VTuber, B2B, and Web3 sub‑units, continue to invest heavily; FY24 sales are projected at ¥8.1 billion with operating income near break‑even, while FY26 targets a shift to profitability across all sub‑units. DX focuses on marketing and operational digital transformation services, forecasting FY24 sales of ¥5.7 billion with stable operating income, and FY26 aims for ¥7.9 billion in sales and ¥1.2 billion in income. Commerce, anchored by aumo Inc., expects FY24 sales of ¥1.5 billion and modest operating income, with a projected FY26 rise to ¥3.3 billion and ¥0.4 billion income as HR media initiatives mature. Investment activities remain a key driver, with assets under management at ¥80 billion and significant distributions from fund exits and startup investments. The company projects consolidated FY24 operating income between ¥4.0 billion and ¥5.0 billion, excluding new game titles, while FY26 forecasts maintain a similar range with an anticipated 10 % return from investment holdings. GREE’s strategy emphasizes diversifying revenue streams beyond games, expanding overseas distribution, and building a multi‑layered development pipeline to stabilize earnings and support medium‑term growth.

market-analysis investment metaverse+2

GREE

Report

Full-Year FY2025 Financial Results Briefing

GREE Holdings delivered a full‑year FY2025 briefing that highlighted robust profitability across its four operating segments—Game, Metaverse, IP, and DX—while outlining strategic investment plans for FY2026 and beyond. Net sales reached ¥53.8 billion with operating profit of ¥5.3 billion and EBITDA of ¥5.6 billion, meeting forecasted targets; consolidated results stood at ¥57.1 billion in sales and ¥4.9 billion operating profit. The company projects FY2026 net sales of ¥58.1 billion and operating profit of ¥3.6 billion, anticipating growth primarily from the Metaverse and DX businesses, while Game investments are expected to suppress short‑term profitability. Segment analysis shows the Metaverse business achieving a 10 % YoY sales increase but declining operating profit due to one‑off VTuber talent costs; the Game segment posted ¥9.1 billion in 4Q sales and a 18 % operating margin, with future revenue driven by new titles such as *That Time I Got Reincarnated as a Slime: ISEKAI Memories*. The IP business shifted focus to proprietary anime licensing and merchandising, recording a temporary loss in 4Q but forecasting recovery. The DX segment maintained flat sales at ¥1.75 billion, with consulting profits aligning forecasts while solutions investments temporarily eroded margins. Financial discipline remains strong; equity ratio targets of 60 % and debt‑to‑EBITDA below 6× were exceeded. Dividend policy will pay ¥14.5 per share, combining a regular ¥4.5 and commemorative ¥10 share payout for the company’s 20th anniversary. Investment activities, particularly in cryptocurrency and fund management, showed volatility but a stable long‑term cumulative profit. The firm plans to increase LP investment ratios and target an ROIC of ~10 % by FY2030, maintaining a balanced portfolio while pursuing growth in its core entertainment and technology businesses.

market-analysis market-forecast metaverse+1

GREE

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Summary of Main Supplementary Explanations Questions and Answers: FY2021 Third Quarter GREE Results Briefing

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.

market-analysis game-development live-ops+3

GREE

Report

FY2024 Second Quarter Financial Results Briefing

FY2024 second‑quarter results for GREE, Inc. show net sales of ¥14.2 billion and operating income of ¥0.8 billion, matching forecasts. EBITDA reached ¥0.9 billion. Segment performance varied: Game and Anime sales fell due to title closures (SINoALICE) and the end of anniversary events for Heaven Burns Red, while DX and Commerce segments posted QoQ gains. The Metaverse Business experienced a decline linked to the Platform Business’s anniversary campaign, yet cost‑efficiency measures reduced losses. Investment activities remained flat, with a ¥0.1 billion operating loss and no large‑scale distributions. Key figures include a 2Q operating income of ¥0.22 billion for DX (sales ¥1.35 billion) and a Commerce forecast of ¥0.1 billion operating income on projected sales of ¥1.5 billion for FY2024. The company projects a full‑year operating income of ¥5 billion, unchanged from the FY2023 guidance. Medium‑term targets aim for a ¥2 billion operating income from the Metaverse Business by FY2026 and a ¥0.4 billion operating profit for Commerce, with continued investment in the Investment Business. Geographically, operations focus on Japan and expanding Chinese markets via licensed titles. The briefing relied on quarterly financial statements, segment forecasts, and management commentary to assess performance trends and future outlook.

market-analysis metaverse mobile+1

GREE

Report

FY2013 Second Quarter Financial Results

The quarterly financial release outlines a mixed performance for FY2013 second quarter, with net sales rising 4 % QoQ to ¥39.4 billion but falling 5 % YoY, while EBITDA and operating profit declined sharply by 6 % and 9 %, respectively. Net profit remained flat QoQ at ¥9.0 billion but dropped 29 % YoY, reflecting higher costs and a one‑time currency gain. Consolidation of Pokelabo in October contributed to the QoQ sales growth, and the company noted a 35 % increase in cost of sales driven by higher labor and advertising expenses, alongside a 60 % rise in depreciation. Geographically, Japan remains the core market; coin consumption grew QoQ by 600 million coins, with strong performance in native titles such as “Driland” and IP‑based releases. Overseas coin consumption has been rising monthly since October, with new in‑house and co‑branded games expected to contribute from Q3 onward. The company plans aggressive smartphone investments in H2, targeting hit titles across new genres (MMO, FPS) and leveraging efficient marketing to balance lifetime value against cost per install. The revised FY2013 forecast reflects a downward revision of net sales to ¥170 billion (−17.9 % from prior forecast) and operating profit to ¥60 billion (−32.4 %). The outlook hinges on postponed releases in H2 and continued hiring to support smartphone growth, with anticipated increases in customer‑support and compliance costs. Overall, the report signals a strategic pivot toward diversified game genres and international expansion while managing cost pressures in a competitive mobile gaming landscape.

market-analysis market-forecast monetization+3

GREE

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.

market-analysis investment metaverse+3

GREE

Report

FY2023 Third Quarter GREE Results Briefing: Summary of Supplementary Explanations

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.

market-analysis monetization metaverse+3

GREE

Report

FY2018 3Q Result Presentation

GREE, Inc. reported FY2018 third‑quarter results with net sales of ¥17.9 billion, operating income of ¥2.8 billion and EBITDA of ¥3.2 billion, falling short of the sales target but surpassing operating profit expectations. The company attributes the sales lag to delayed releases, postponed North American operations, and a temporary slowdown in mobile game performance; however, cost reductions—particularly in commission fees, advertising spend, and fixed costs—boosted margins to 15 %. Forecasts for Q4 project net sales of ¥18.5 billion, operating income of ¥2.2 billion and EBITDA of ¥2.5 billion, with a modest decline in net profit anticipated due to increased advertising investment. Strategically, GREE is expanding beyond its core game and advertising media businesses into a third pillar: live entertainment focused on virtual YouTubers (VTubers). The company plans to leverage its gaming, VR, and engineering capabilities for VTuber production, distribution, and IP development, aiming to monetize through merchandise, games, and partnerships. Concurrently, the media division continues to grow, highlighted by a top‑ranked travel app and diversified verticals. Geographically, the firm is intensifying overseas penetration, notably with North American releases of titles such as DanMachi and plans to extend into Asian and European markets. The pipeline includes six new titles, with a focus on periodic content updates to sustain revenue streams. Methodologically, the presentation relies on internal financial data and trend analysis of existing titles to inform forecasts, emphasizing operational efficiency and global expansion as key growth levers.

market-analysis mobile rpg+3

GREE