GREE

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256 documents

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FY2019 Third Quarter Financial Results

The FY2019 third‑quarter results demonstrate a solid operating performance driven largely by overseas distribution of first‑party IP and cost efficiencies in existing titles. Net sales reached ¥17.6 billion, slightly below the forecasted ¥18 billion range but up 0.23 % YoY, while operating income rose to ¥1.6 billion, surpassing the forecasted ¥1.5 billion and marking a 0.59 % QoQ increase. EBITDA stood at ¥1.8 billion, reflecting a 0.60 % QoQ gain and a 1.35 % YoY decline, largely attributable to one‑off events that added ¥390 million in sales and ¥460 million in income. Adjusted figures, excluding these events, show net sales of ¥17.25 billion and operating income of ¥1.09 billion, underscoring the underlying strength. Key drivers include a successful launch of “Another Eden” in eight overseas markets, which contributed significantly to paid‑service sales (¥13.65 billion), and a global simultaneous collaboration event for “DanMachi” that boosted user engagement. The company also advanced its mobile pipeline, with five titles in development and pre‑registrations for “AFTERLOST” underway. Cost management improved markedly, with total costs falling ¥700 million QoQ to ¥16.1 billion, driven by reduced outsourcing and streamlined operations. Geographically, the focus remains on Japan with expanding presence in North America, Europe, and Asia‑Pacific through self‑distribution and partner agreements. The 4Q forecast projects net sales of ¥17–18 billion and operating income of ¥1.0–1.5 billion, anticipating continued momentum from anniversary events and new title releases. The company’s workforce totals 1,693 employees across game‑entertainment, advertising, and other businesses.

market-analysis mobile live-ops+2

GREE

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FY2023 Second Quarter Financial Results Briefing

FY2023 second‑quarter results for GREE, Inc. show net sales of ¥16.6 billion and operating income of ¥1.7 billion, with EBITDA at ¥1.8 billion. The Internet and Entertainment Business generated ¥1.5 billion of operating income, exceeding forecasts largely due to the strong performance of the mobile title Heaven Burns Red. The company highlighted continued global rollout of this IP, including Korean and traditional Chinese releases scheduled for February 10, and noted its inclusion on Google Play’s “Best Games of 2022” list. Overseas sales for the metaverse platform REALITY doubled between June and December 2022, with expanding monetization and new content features such as an avatar shop and collaborative stickers. Financially, ordinary income fell quarter‑on‑quarter because of foreign‑exchange losses on assets denominated in foreign currencies, and net income turned a ¥0.9 billion loss after a valuation loss on investment securities. Operating costs declined by ¥0.2 billion to ¥14.8 billion, with no significant structural changes. The Investment and Incubation Business moved into profitability in Q2 after a loss in Q1, driven by distribution from investees. Asset‑under‑management figures remained stable, while new investments were made in six venture funds and eleven startups. The company maintains its FY23 outlook, projecting third‑quarter Internet and Entertainment operating income between ¥1.0 billion and ¥1.5 billion, with potential upside from global distribution gains. Scope covers Japan‑based operations with significant overseas revenue streams; the period is FY2023 Q2, and segments include Internet & Entertainment, Metaverse, Commerce & DX, Game & Anime, and Investment & Incubation. Data derive from internal financial statements and operational metrics presented in the briefing.

market-analysis mobile rpg+2

GREE

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FY2023 First Quarter Financial Results Briefing

GREE, Inc. reported FY2023 first‑quarter results with net sales of ¥16.6 billion and operating income of ¥1.58 billion, driven largely by the Internet and Entertainment segment. The flagship game “Heaven Burns Red” continued to outperform expectations, sustaining high sales rankings and generating strong variable revenue; however, quarter‑on‑quarter sales declined after a peak in FY22 due to the absence of new releases and anniversary events. Variable costs fell, while fixed costs remained stable, resulting in a total cost reduction of ¥2.0 billion to ¥15.0 billion. The Metaverse business, centered on the global platform REALITY, achieved a milestone of 10 million downloads across 63 countries. GREE plans to expand content and communication features—such as new gaming titles, reaction stickers, and chat GIFs—to increase user engagement and monetize the platform further. The Commerce and DX segment continued to grow its SaaS offering, aumo My Business, with rising media users and clients. Investment and Incubation activities saw an AUM increase to ¥80 billion, driven by asset revaluation and new investments in three VC funds (Japan and the U.S.) and 14 startups. Despite a decline in listed‑stock valuations, unlisted holdings rose, improving overall portfolio value and IRR, particularly in the growth phase. Geographically, GREE’s operations span Japan and international markets, with a focus on expanding overseas reach for both gaming and Metaverse services. The company anticipates stable income in FY23, with a projected operating income of ¥1.0–¥1.5 billion for the second quarter, while maintaining aggressive investment in Metaverse development.

market-analysis metaverse mobile+2

GREE

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Summary of Main Q&A: FY2018 Second Quarter GREE Results Briefing

The briefing clarified GREE’s strategic shift toward console gaming while maintaining its mobile‑centric foundation. The company announced that “Fishing Star,” its first Nintendo Switch title, will be sold as a single‑purchase download without in‑game microtransactions, leveraging the console’s unique features to deliver a classic fishing experience. GREE emphasized its intent to build a multiplatform, multiregional development system that supports both mobile and console releases for Japanese and overseas markets, aiming to broaden its audience base. Progress on international titles was described as steady, with ongoing partner selection for overseas distribution of games such as “Is It Wrong to Try to Pick Up Girls in a Dungeon: Memoria Freeze.” Exact launch dates remain undetermined as the company evaluates optimal release strategies. GREE also addressed concerns about a slowed release cadence, noting that while operational focus on existing hits remains strong, the company continues to pursue new projects, as illustrated by its development pipeline figures. Regarding monetization models, GREE stated that decisions on free‑to‑play console titles with in‑game purchases will be made on a case‑by‑case basis, reflecting each title’s characteristics. Cost control is highlighted by the company’s avoidance of large‑scale first‑time console projects, thereby limiting development expenses. Advertising and media investments are maintained at a consistent level across the first two quarters, with future spending tied to expected returns. Operational improvements were cited for key mobile titles, such as the addition of new scenarios in “Another Eden: The Cat Who Goes Beyond Time,” demonstrating a system that enables rapid content deployment to meet customer demand.

market-analysis game-publishing monetization+2

GREE

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FY2018 4Q Financial Results Presentation

The presentation outlines Wright Flyer Live Entertainment’s FY2018 financial performance and strategic outlook. Net sales for the fiscal year reached 77.9 billion yen, with operating income of 9.4 billion yen, reflecting year‑on‑year growth driven by strengthened operations of existing mobile titles and successful overseas expansion. Q4 results showed 19 billion yen in sales and 1.6 billion yen in operating income, with a modest quarter‑on‑quarter increase attributed to new title launches and advertising investment. Operating margin declined due to significant capital expenditures and goodwill impairment losses linked to the 2017 acquisition of Three Minutes, which did not meet projected growth rates. The company’s three‑pillar earnings strategy—game development, advertising and media, and live entertainment—is reinforced through aggressive investment. In gaming, the focus is on global rollout of mobile IPs such as “Another Eden,” “SINoALICE,” and “DanMachi,” with plans to release 4–5 new titles annually. Advertising and media efforts aim to build a leading vertical portfolio in Japan, while the live entertainment arm, launched via a new subsidiary, seeks to expand the VTuber ecosystem with a 10 billion yen investment. Geographically, operations span Japan and overseas markets including North America, Europe, East Asia, and China. Methodologically, the presentation relies on internal financial data, quarterly forecasts, and strategic planning documents, with a 20 % dividend payout ratio and a commemorative dividend of 10 yen per share for the company’s tenth anniversary.

market-analysis investment live-ops+2

GREE

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FY2013 First Quarter Financial Results

The quarterly results for FY2013 first quarter show a 5 % decline in net sales compared with the previous quarter, yet monthly sales have begun to recover after a July trough. Net sales fell 25 % year‑over‑year to ¥37,935 million, while EBITDA and operating profit dropped 15 % and 17 %, respectively. Net profit fell 26 % QoQ to ¥9,069 million and 4 % YoY. Labor costs rose 7 % QoQ, reflecting a global expansion plan that also increased other upfront investments. Advertising and paid‑charge expenses grew modestly, while rental charges fell 38 % QoQ due to a temporary spike in the prior quarter. Cash and cash equivalents dropped 48 % QoQ, but current assets fell only 30 %, supported by a 55 % YoY rise in receivables. Total assets declined 17 % QoQ, largely from a 40 % reduction in current liabilities. The company’s balance sheet remains solid with retained earnings up 3 % QoQ. Strategically, the company accelerated game releases in Japan and overseas, adding IP‑based titles such as “Metal Gear Solid Social Ops” and “World Ends With You Live Remix.” Partnerships with Pokelabo, Yahoo! Japan, and SingTel expanded user reach in domestic, North American, European, Korean, and Asia‑Pacific markets. A new merchandising subsidiary was launched to monetize IP through consumer products. The company also strengthened its regulatory and safety framework, joining the Japan Social Game Association and enhancing content monitoring systems. Overall, the quarter reflects a recovery trajectory amid investment in global expansion and IP‑driven game development.

market-analysis mergers-acquisitions mobile+2

GREE

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Financial Results for the Third Quarter of the Fiscal Year Ending on June 30, 2011: Japan

GREE, Inc. reported robust financial and operational performance for the third quarter of fiscal year 2011 (ending June 30, 2011). Net sales rose 14% to ¥16.4 billion from the prior quarter and 77% year‑over‑year, driven by continued growth in paid services from its flagship social networking platform and expanding advertising revenue. Operating profit increased 18% to ¥8.2 billion, maintaining a high margin of roughly 50%. The company’s cash position strengthened, with operating cash flow at ¥4.2 billion and total assets growing 15% to ¥46.4 billion, while retained earnings surged 20% year‑over‑year. User metrics underscored the platform’s dominance: registered members exceeded 25 million, with a stable demographic profile—48% of users in their 30s and 40s, a group with higher average spend. Geographic distribution remained concentrated in Japan, but strategic initiatives aimed at international expansion were highlighted, notably the planned acquisition of OpenFeint (75 million users) and partnerships with Tencent to tap a 650‑million user base. Operationally, GREE expanded its mobile ecosystem through the “GREE Platform for Smartphone,” launching partner and original apps across web, iOS, and Android with multiple payment options. Monetization efforts included a new ad program targeting partner apps and the introduction of “GREE Ad Program” to broaden advertising revenue streams. The company also addressed external shocks, noting minimal impact from the Tohoku earthquake on paid‑service income and launching a donation portal that raised ¥188 million from members, supplemented by a corporate contribution of ¥100 million. Safety and security measures were reinforced through enhanced content monitoring, age verification protocols, and educational outreach. Strategically, GREE outlined a multi‑pronged growth plan: intensifying original game development, expanding the smartphone platform and monetization base, accelerating international platform deployment via acquisitions and partnerships, and scaling advertising operations. These initiatives aim to consolidate GREE’s position as Japan’s leading social networking service while positioning it for global leadership in the social game and platform markets.

monetization mobile japan+1

GREE

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FY2018 1Q Result Presentation

GREE, Inc. reported FY2018 first‑quarter results with net sales of ¥21.6 billion, operating income of ¥2.7 billion and EBITDA of ¥3.1 billion, marking growth over the prior quarter but modest year‑on‑year increases after adjusting for a ¥10 billion one‑time tax effect from a North American reorganization. Net income rose when excluding that special item, though the operating margin remained flat due to higher advertising and commission costs offset by reduced fixed expenses. Forecasts for the first half of FY2018 project net sales of ¥40.5 billion, operating income of ¥4.5 billion and EBITDA of ¥5.2 billion, with expectations of a Q2 moderation following the strong Q1 performance and subsequent releases. Strategically, GREE continues to expand its native game portfolio through engine, IP and global initiatives, launching several titles in Q1 and planning five releases for the second half. The company emphasizes aggressive advertising, including TV commercials for its media platform LIMIA and MINE, achieving 1 million monthly active users on LIMIA. Game monetization is driven by IP‑based titles and collaboration events, with a noted peak in coin consumption at launch followed by sustained growth. The VR segment sees partnership‑driven releases, such as a PlayStation VR title with Square Enix. Geographically, GREE focuses on domestic growth while preparing overseas distribution for select IP games via partners like Crunchyroll. The presentation covers financial performance, cost structure, and operational plans across game development, media expansion, and VR ventures for FY2018.

market-analysis game-publishing mobile+2

GREE

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FY2019 First Quarter Financial Results

The FY2019 first‑quarter results show net sales of ¥18.2 billion, operating income of ¥1.6 billion and EBITDA of ¥1.9 billion, reflecting a 0.4‑percentage‑point rise in operating margin to 8.9 % QoQ. Net sales were driven primarily by paid‑service revenue of ¥14.87 billion, with other streams such as advertising and licensing contributing the remainder. Variable costs fell by ¥800 million QoQ, largely due to reduced advertising spend and commission fees, while fixed costs remained stable. Labor expenses increased modestly as headcount rose from 1,480 to 1,604 employees. Geographically the company expanded overseas distribution in October, launching Danmachi in North America and extending to South Korea and Taiwan. New first‑party titles, including Wild Arms: Million Memories for PlayStation® and the LINE QUICK GAME platform releases of Fishing Star and Another Eden, were introduced. A livestreaming platform for VTubers, REALITY, was launched in August, and joint ventures with music labels were announced to support VTuber content. The forecast for FY19 Q2 projects net sales of ¥17.0‑18.0 billion and operating income of ¥1.0‑1.5 billion, based on current title performance and planned overseas releases. The company’s strategy focuses on multi‑platform distribution, fan community expansion through media collaborations, and monetization of first‑party IP across gaming, live entertainment, and advertising sectors.

market-analysis game-publishing live-ops+5

GREE

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Summary of Main Supplementary Explanations Questions and Answers: FY2021 Fourth Quarter

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.

metaverse mobile global+1

GREE

FY2019 Third Quarter Financial Results

FY2023 Second Quarter Financial Results Briefing

FY2023 First Quarter Financial Results Briefing

Summary of Main Q&A: FY2018 Second Quarter GREE Results Briefing

FY2018 4Q Financial Results Presentation

FY2013 First Quarter Financial Results

Financial Results for the Third Quarter of the Fiscal Year Ending on June 30, 2011: Japan

FY2018 1Q Result Presentation

FY2019 First Quarter Financial Results

FY2015 Fourth Quarter Financial Results

Summary of Main Supplementary Explanations Questions and Answers: FY2021 Fourth Quarter

FY2014 Second Quarter Financial Results

GREE

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