GREE

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Financial Results for the Second Quarter of the Fiscal Year Ending on June 30, 2011

GREE, Inc. reports a robust second‑quarter performance for the fiscal year ending June 30 2011, driven by continued dominance in Japan’s social networking and mobile gaming markets. Net sales rose 15 % QoQ to ¥14,302 million and 75 % YoY, with operating profit up 11 % QoQ to ¥6,924 million and net income increasing 13 % QoQ. Growth is attributed to a 18 % rise in paid‑service sales and a modest 4 % increase in advertising revenue, offsetting higher cost of sales driven by expanded data‑center rentals and personnel expenses. Subscriber metrics underscore market leadership: registered users reached 23.83 million by December 2010, with monthly page views climbing steadily as the GREE Platform attracted 171 partner companies. The company’s original game portfolio doubled to 560 titles by January 2011, and monthly‑fee plans for partner apps were launched. Smartphone initiatives progressed with the release of GREE beta on Android and free iOS games, positioning the platform for a feature‑phone transition. Financially, current assets grew 31 % QoQ to ¥37,074 million, while cash and deposits increased 23 %. Operating cash flow remained positive at ¥4,707 million. The company’s strategic focus includes expanding overseas partnerships—most notably with Tencent—and enhancing advertising through a subsidiary ad network. Safety and security measures were intensified, with stricter content monitoring and age verification protocols implemented to protect younger users. Overall, the quarter reflects sustained revenue growth, strategic platform expansion, and a proactive approach to regulatory compliance.

market-analysis monetization mobile+1

GREE

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FY2023 Third Quarter Financial Results Briefing

GREE, Inc. reported FY2023 third‑quarter results with net sales of ¥22.2 billion, operating income of ¥4.2 billion and EBITDA of ¥4.3 billion, exceeding forecasts in both the Internet & Entertainment and Investment & Incubation segments. The Internet & Entertainment Business generated ¥1.8 billion in operating income, driven by the game Heaven Burns Red, which achieved No. 1 App Store sales rankings during its one‑year anniversary event and began successful global distribution in Korea, Taiwan, and Hong Kong. Promotional spending of approximately ¥3 billion increased variable costs but supported medium‑term growth, while fixed costs remained stable. The Investment & Incubation Business contributed ¥2.4 billion, largely from dividends and distributions of venture‑capital funds, though total assets under management fell by ¥4.0 billion due to earnings payouts. Operating income outlook for FY23 remains unchanged; the fourth quarter is projected to deliver roughly ¥1.5 billion from Internet & Entertainment and ¥0.5 billion from Investment & Incubation, totaling about ¥2.0 billion. Dividend policy targets a 20 % payout ratio, with an announced dividend of ¥11 per share. Strategic initiatives included the launch of REALITY Studios Inc. and FIRST STAGE PRODUCTION for VTuber talent, and REALITY XR Cloud for B2B metaverse services, achieving 42 million annual visitor traffic. Commerce and DX businesses continued to expand through travel media aumo and collaborations with automotive and media partners. Overall, GREE’s three‑pillar earnings strategy—Game, Metaverse, and Investment—remains focused on sustained growth through global distribution, content diversification, and high‑quality venture investments.

market-analysis investment mobile+2

GREE

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FY2021 Third Quarter Financial Results

The FY2021 third‑quarter results demonstrate a robust performance driven largely by the launch of new titles and cost efficiencies. Net sales rose to ¥13.9 billion, up 0.23 % QoQ and down 1.53 % YoY from ¥15.44 billion in the same period of FY2020, while operating income increased to ¥1.72 billion, a 1.16 % QoQ gain and a 0.49 % YoY rise from ¥1.24 billion. EBITDA reached ¥1.91 billion, up 1.15 % QoQ and 0.55 % YoY from ¥1.36 billion, reflecting a 15 % operating‑income margin. Net income surged to ¥5.08 billion, a 2.09 % QoQ increase and 3.90 % YoY growth, largely attributable to profit from investment‑fund operations. Key drivers include the strong start of “Assault Lily: Last Bullet,” which entered distribution on January 20 and achieved a 16th‑place ranking in app sales, and the development of third‑party titles such as “That Time I Got Reincarnated as a Slime” and “Mao to Ryu no Kenkokutan.” Advertising costs fell by ¥0.38 billion QoQ, while commission fees declined due to reduced royalties from app games. Total costs decreased by ¥0.93 billion QoQ, driven by lower variable and fixed expenses. The company maintained a flexible capital policy through a stock‑repurchase program of up to 20 million shares (≈¥12 billion) and announced a dividend of ¥11 per share, up from ¥10 in FY2020. Geographic coverage spans Japan, North America, Europe, and Asia, with ongoing overseas distribution of multiple IP titles. The methodology relies on consolidated financial statements and quarterly operational data, providing a comprehensive view of performance across game development, live entertainment, and advertising initiatives.

market-analysis mobile live-ops+1

GREE

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FY2021 Third Quarter Financial Results Briefing

The briefing presents FY2021 third‑quarter financial results for GREE Inc., highlighting a net sales figure of ¥13.9 billion, operating income of ¥1.7 billion and EBITDA of ¥1.9 billion, all exceeding forecasts. Operating income rose by ¥1.2 billion from the prior quarter to ¥1.72 billion, driven by strong performance of the newly released title “Assault Lily: Last Bullet” and cost‑control measures that reduced variable costs, royalties, and fixed labor and outsourcing expenses by ¥0.9 billion to a total cost of ¥12.2 billion. Key operational developments include the launch of “Assault Lily: Last Bullet” on January 20, its rapid climb to 16th in app‑sales rankings, and the planned release of “That Time I Got Reincarnated as a Slime” later in 2021. The company maintains a pipeline of two to three new in‑house titles annually, with additional IP collaborations such as “SINoALICE” and “DanMachi.” Live‑entertainment activities on the REALITY platform expanded through new avatar gacha offerings and user events, while advertising campaigns continued to energize communities. Financial outlook remains positive: operating income for Q4 is projected at roughly ¥1 billion, and full‑year FY2021 forecasts anticipate growth in both operating income and net income. Dividend policy targets a 2 % distribution of earnings, with an FY2021 payout forecast of ¥11 per share. Stock repurchase activity has reached 60 % of a planned upper limit of ¥12 billion, underscoring management’s commitment to shareholder value.

market-analysis game-publishing live-ops+2

GREE

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FY2025 First Quarter Financial Results Briefing

The briefing presents FY2025 first‑quarter results for GREE, Inc., highlighting a net sales figure of ¥12.9 billion and an operating loss of ¥0.1 billion, largely driven by valuation losses in the Investment Business and foreign‑exchange impacts from yen appreciation. While Game and Anime, Metaverse, and DX segments exceeded forecasts—thanks to strong performance of the Chinese version of *Heaven Burns Red*, continued growth in platform and VTuber services, and solid DX profitability—the Investment Business posted a ¥0.8 billion operating loss due to crypto‑asset valuation declines and write‑downs on maturing funds. Variable costs rose from advertising spend and investment losses, whereas fixed costs remained relatively stable. Geographically, the company operates globally with significant overseas assets; the report notes a ¥1.4 billion FX loss affecting ordinary and net profit. The management plan positions Metaverse and DX as continuous‑growth businesses targeting a 120–140 % CAGR in operating profit, while Game and Anime are treated as long‑term investment assets. Medium‑term targets emphasize aggressive investment in VTuber talent and DX product development, with expectations of profitability from the VTuber segment by FY2026 and accelerated growth in DX by FY2027. Methodologically, the briefing relies on quarterly financial statements, segment‑level performance data, and investment portfolio valuations. The Investment Business’s dual GP/LP structure is explained to contextualize volatility, with an emphasis on long‑term stability despite short‑term losses. Overall, the company projects FY2025 results in line with prior forecasts but anticipates slightly lower Game and Anime sales, offset by higher operating profit from continuous‑growth segments.

market-analysis investment metaverse+4

GREE

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Summary of Main Questions and Answers at the FY2017 3Q GREE Results Briefing

The briefing clarified GREE’s strategic focus on development efficiency, content readiness, and technology evolution. Development costs are primarily driven by the time required to build a title from scratch; reusing existing game engines shortens this period, reducing expenses. At launch, titles typically have two to three months of content prepared, a volume that has increased over the past few years. GREE highlighted several engine‑based projects—Memories of the Blue, Rara‑Magi, A Farewell to Arms, and Another Eden: The Cat Who Goes Beyond Time—emphasizing ongoing engine development for future releases. Genre classification follows a broad RPG umbrella, subdivided into 2D/3D and action categories; A Farewell to Arms exemplifies a 3D action RPG. Engine longevity is monitored against market trends; outdated engines are upgraded or replaced to maintain relevance. In virtual reality, GREE pursues two initiatives: a high‑end console VR arcade game and mobile VR experiences. Advertising and media efforts concentrate on video content, a rationale behind acquiring 3Minute to build internal expertise and expand related businesses. Regarding mobile gaming’s future, the company believes that replicating console‑quality experiences on smartphones will secure long‑term growth and user loyalty, prompting continued investment in enduring content.

market-analysis game-development game-engines+2

GREE

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FY2021 First Quarter Financial Results Briefing

FY2021 first‑quarter results for GREE, Inc. show a robust financial performance with net sales of 15.2 billion yen and operating income of 1.6 billion yen, exceeding forecasts and achieving an operating margin above 10 %. Net income rose sharply by 3.2 billion yen compared to the prior quarter, largely due to a valuation loss on investment securities and a partial reversal of deferred tax assets. EBITDA reached 1.8 billion yen, underscoring healthy profitability. The company’s game business drove the growth, highlighted by the global launch of SINoALICE on July 1st across 139 countries. Coin consumption in the app increased by 40 % from the previous quarter, and existing titles maintained strong sales momentum. Fixed costs fell by 1.41 billion yen, with a further 580 million yen reduction after excluding one‑time expenses, attributed to restructuring and lower outsourcing costs. The company also announced a share repurchase program capped at 20 million shares and 12 billion yen to enhance shareholder returns. Strategic expansion into China continued with the September release of DanMachi and a November launch of Another Eden, supported by local partners. The live‑entertainment platform REALITY added new content and avatar options, while the advertising and media segment grew its user base to over 10 million monthly users. Looking ahead, GREE plans to release two to three new in‑house titles annually, including Assault Lily: Last Bullet and licensed properties such as One‑Punch Man, with additional projects in development. The company expects operating income for Q2 to remain in the mid‑to‑high hundred million yen range, reinforcing its earnings pillars across game, live entertainment, and advertising/media businesses.

market-analysis mobile rpg+2

GREE

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Summary of Main Questions and Answers at the FY2018 Fourth Quarter GREE Results Briefing

The briefing summarized GREE’s strategic focus for FY2019 and addressed investor inquiries about recent performance. The company reaffirmed its commitment to expanding the overall live entertainment market, emphasizing growth in both domestic and overseas game titles. In FY2019, GREE plans to roll out existing games internationally while pursuing new development projects, positioning itself to capture emerging markets. A key point of discussion was the goodwill impairment in the advertising and media segment, attributed to underperformance of the 3 Minutes unit. Despite this setback, management highlighted sustained growth across the advertising and media business, noting that it remains a sizable contributor to revenue. The company intends to continue investing in this area to accelerate expansion. The briefing also addressed the anticipated impact of 5G technology, with executives predicting that widespread adoption will drive demand for more creative gaming experiences. Consequently, GREE plans to enhance its development and creative capabilities to capitalize on the opportunities presented by faster connectivity. Investor interest in marketing tactics was reflected in questions about the television advertisement for SINoALICE. Management reported a positive outcome, citing record-high daily active users and strong retention rates following the campaign. Finally, the potential use of VTubers in future corporate promotion activities was acknowledged; GREE will evaluate audience response and consider incorporating VTubers again in upcoming events.

market-analysis game-publishing mobile+2

GREE

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FY2022 First Quarter Financial Results

The first‑quarter fiscal year 2022 results show net sales of ¥13.7 billion, operating income of ¥1.6 billion, and EBITDA of ¥1.6 billion, reflecting a 4% decline in sales versus the prior quarter but an improvement over the same period last year. Operating income fell by 1.6 billion yen from the previous quarter, largely due to a rebound in anniversary events for core titles such as *Another Eden* and *SINoALICE*. The decline was partially offset by gains in the Investment and Incubation Business, which contributed ¥0.47 billion to operating income. Cost structure analysis indicates total costs decreased by ¥0.6 billion QoQ to ¥12.1 billion, driven mainly by lower commission fees and reduced variable costs. Advertising expenses rose to ¥0.82 billion, reflecting increased investment in the Metaverse platform *REALITY* and global promotional activities. Labor costs remained stable, while outsourcing expenses for game development increased. The company continued to expand its gaming portfolio, launching *That Time I Got Reincarnated as a Slime: ISEKAI Memories* and pre‑registering *Heaven Burns Red*. Metaverse initiatives saw expanded avatar content and global distribution, while media collaborations broadened community engagement. Investment activities maintained a stable long‑term income stream, with assets under management around ¥67 billion across corporate venture capital and LP funds. Share repurchase activity reached roughly 15.4 million shares, totaling ¥13.6 billion, as part of a flexible capital policy aimed at enhancing shareholder returns. The overall outlook emphasizes growth in sales and profit through stable operations of core gaming titles, new releases, and continued investment in emerging digital platforms.

market-analysis game-development metaverse+2

GREE

Financial Results for the Second Quarter of the Fiscal Year Ending on June 30, 2011

FY2023 Third Quarter Financial Results Briefing

FY2021 Third Quarter Financial Results

FY2021 Third Quarter Financial Results Briefing

Financial Results for the Third Quarter: Fiscal Year Ending June 30, 2012

FY2025 First Quarter Financial Results Briefing

Summary of Main Questions and Answers at the FY2017 3Q GREE Results Briefing

FY2021 First Quarter Financial Results Briefing

Summary of Main Questions and Answers at the FY2018 Fourth Quarter GREE Results Briefing

FY2025 Full-Year Financial Results

FY2024 Fourth Quarter Financial Results

FY2022 First Quarter Financial Results

GREE

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