GREE

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FY2018 Second Quarter Financial Results

The FY2018 second‑quarter results demonstrate a successful rebound in sales and profitability, with net sales reaching ¥19.5 billion and operating income at ¥2.3 billion, slightly below the prior quarter but still surpassing year‑on‑year targets. EBITDA stood at ¥2.7 billion, reflecting a 12.0 % operating margin that narrowed by 0.5 percentage points QoQ. Revenue was dominated by paid‑service sales (¥17.21 billion) and ad‑media sales (¥2.25 billion). Cost control initiatives reduced total costs by ¥1.8 billion QoQ, driven mainly by lower advertising spend and commission fees; variable costs fell ¥1.92 billion while fixed costs remained stable. Strategically, the company expanded its portfolio by launching “Library Cross Infinite” in January and entering the console market with the Nintendo Switch title “Fishing Star.” Development pipelines now include five mobile titles, with two already released and three in advanced stages. Mobile operations benefited from new scenarios and large‑scale collaborations, while the advertising arm reported 1.8× QoQ growth in page views and advertiser numbers across its media brands. Forecasts for the third quarter project net sales of ¥19.5 billion and operating income of ¥2.5 billion, assuming continued cost discipline and steady growth in paid services. The company’s geographic focus remains global, with releases across Japan, Australia, India, South Korea, and Taiwan. Methodologically, figures derive from consolidated financial statements, with headcount totaling 1,407 across game, advertising, and corporate functions.

market-analysis game-development game-publishing+3

GREE

Report

Summary of main supplementary explanations questions and answers at the FY2025 First Quarter GREE results briefing held on November 5, 2024 PDF

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.

market-analysis game-publishing investment+3

GREE

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FY2021 Second Quarter Financial Results

FY2021 second‑quarter results show net sales of ¥13.7 billion, operating income of ¥0.6 billion and EBITDA of ¥0.8 billion, meeting forecasted targets. Ordinary income rose to approximately ¥3.0 billion largely due to gains from investment‑fund operations, while net sales declined from the first quarter because of a seasonal dip in game revenue. Operating income remained stable, with expectations for Q3 around ¥1.0 billion as new titles launch. Key releases include “Assault Lily: Last Bullet,” a collaboration with Bushiroad, TBS and SHAFT, which debuted on January 20th and is supported by a media‑mix strategy that incorporates anime integration. The domestic launch of “One‑Punch Man Ichigeki Maji Fight” began in late October, and the Chinese version of “Another Eden” was released on November 5th through X.D.Network Inc. The company plans to add two to three in‑house titles annually, with “Heaven Burns Red” and “Knights of Sidonia” slated for 2021. Operationally, coin consumption fell from Q1 due to a slowdown in SINoALICE and seasonal effects, yet overall consumption remained stable. Advertising costs rose because of new‑title promotion, while variable costs such as commission fees decreased. Fixed costs increased slightly due to higher outsourcing expenses during the final development phase of “Assault Lily: Last Bullet.” The live‑entertainment platform REALITY expanded its content library, earning a Google Play Best of 2020 award in the entertainment category. Advertising and media initiatives continued to adapt amid COVID‑19 restrictions, with campaigns for SINoALICE, DanMachi and other IPs. Stock repurchase activity proceeded as planned, supporting shareholder value.

market-analysis mobile rpg+2

GREE

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FY2014 First Quarter Financial Results

The quarterly report presents a mixed financial picture for FY2014 first quarter, with net sales declining 1.7 % QoQ to ¥35.3 billion while operating profit rose by ¥2.0 billion to ¥9.8 billion, driven largely by a ¥3.7 billion reduction in total costs and a ¥1.9 billion cut in fixed expenses. EBITDA increased to ¥11.6 billion, and the operating‑profit margin expanded by 6.6 percentage points to 27.7 %. A significant extraordinary loss of ¥5.0 billion—primarily from a ¥4.2 billion write‑off of title assets and a ¥0.6 billion voluntary retirement provision—offsets the operating gains, leaving net profit at ¥2.4 billion versus a loss of ¥0.3 billion the prior year. Operationally, coin consumption on smartphones grew by ¥1.6 billion QoQ and now accounts for roughly 65 % of total coin spend, reflecting a strategic shift from feature phones to mobile devices. The company continues to release new titles in overseas markets and Japan, targeting a turnaround in Q4 as fresh releases contribute earnings. Cost control remains a priority: advertising spend fell by ¥1.8 billion, and labor costs were trimmed through headcount reductions linked to the retirement program. Geographically, the report covers Japan and overseas operations, with a focus on native game apps in Europe and Asia. The methodology relies on consolidated financial statements, cost‑structure analysis, and coin‑consumption metrics derived from user data. Overall, the company projects a return to profitability in Q4 through disciplined cost management and accelerated title launches.

market-analysis monetization mobile+1

GREE

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Summary of Questions and Answers: FY2017 2Q GREE Results Briefing

The briefing clarified GREE’s strategic focus for FY2017 and beyond. The company confirmed that a smartphone adaptation of Wild Arms, developed with ForwardWorks Corporation, remains in the FY18‑later pipeline. To stabilize coin‑consumption revenue from its game operation segment, GREE plans to shift operations of select titles to Vietnam and enhance marketing efficiency as its portfolio expands. New ventures in video advertising and virtual reality are expected to reach profitability by FY2019, while the acquisition of 3Minute is positioned as an investment in video‑content capabilities to support broader growth. Regarding intellectual property, GREE indicated that its development pipeline includes both partner‑owned IP and its own assets, aiming for a balanced mix. The company highlighted Rara‑MAGI’s strong launch performance and noted that coin consumption for other overseas native titles has declined quarter‑over‑quarter, though a new title is slated for late second half release. Seven titles scheduled for the latter half of the year will see roughly half released in Q3 and the remainder in Q4, with Rara‑MAGI already live. Operating income is projected to dip in Q3 due to increased fixed costs from new releases. GREE will evaluate ongoing titles, closing those unlikely to grow while reallocating resources to high‑potential games. Poor performance is attributed mainly to insufficient content depth or breadth at launch, and lessons learned will inform future development.

market-analysis game-development monetization+3

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

The briefing, held on October 27 2017, focused on GREE’s first‑quarter FY2018 performance and future strategy. Commission fees rose quarter‑on‑quarter, driven by overall sales growth and a higher proportion of revenue from partner titles with strong intellectual property. Advertising spend outlook for the second quarter varies by segment: the game and entertainment arm will tighten costs while continuing to invest in advertising for its expanding user base, expecting a return on investment. Coin consumption is projected to dip temporarily after the strong start of Q4 FY2017 releases, yet titles such as *Another Eden: The Cat Who Goes Beyond Time*, *SINoALICE*, *Senki Zesshou SYMPHOGEAR XD Unlimited*, and *Is It Wrong to Try to Pick Up Girls in a Dungeon: Memoria Freeze* drove robust coin usage in Q1. GREE’s overseas native‑game development pipeline is expected to take a minimum of three months from announcement to launch, averaging six months. The company emphasizes delivering versions faithful to the original Japanese product and local operation for success in China, noting that Chinese users prefer authenticity and require localized fine‑tuning with strong local partners. In the VR arena, GREE is expanding its development knowledge base and partnering to provide access points for users lacking personal VR hardware, anticipating market growth. Regarding the domestic native‑game environment, GREE acknowledges rising user expectations and a challenging acquisition landscape. Leveraging its financial strength and industry relationships, the company plans large‑scale development and mixed‑media initiatives to deliver hit titles. Sales of native games are expected to experience a temporary decline before operations are strengthened—through larger support teams, content enhancement, overseas launches, and tailored promotional activities—to drive subsequent growth.

market-analysis monetization marketing+3

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FY2022 Second Quarter Financial Results Briefing

The briefing presents GREE Inc.’s financial performance for FY2022 second quarter, highlighting a net sales figure of ¥19.5 billion and operating income of ¥2.5 billion, both up markedly from the prior quarter largely due to a new title launch. EBITDA reached ¥2.7 billion, with the Internet and Entertainment Business contributing the full operating income margin. The company attributes growth to the strong start of “That Time I Got Reincarnated as Slime: ISEKAI Memories,” which achieved over two million downloads within two months and secured a top‑four sales ranking globally. Forecasts for the third quarter project operating income between ¥1.5 billion and just under ¥2 billion, driven by anticipated new releases. Operationally, GREE expanded its Metaverse platform REALITY, adding multilingual support and interactive features for up to eight avatars. The Advertising and Media Business introduced a new SaaS marketing tool, “aumo My Business,” targeting physical stores, and partnered with regional tourism bodies to promote local content. Investment activities remained steady; the LP fund and CVC arms invested in domestic and international venture funds, with IRR figures of 17 % (growth phase) and 22 % (exit phase), outperforming domestic benchmarks. Cost analysis shows advertising expenses rose by ¥200 million, commission fees increased with sales, and fixed costs climbed due to bonus provisions. Total operating costs reached ¥17 billion, up ¥4.9 billion quarter‑on‑quarter. Share repurchase and cancellation activities reduced the share count by 35 million shares, lowering outstanding equity. Overall, GREE’s strategy focuses on sustaining game revenue growth, expanding metaverse and SaaS offerings, and maintaining a robust investment portfolio.

market-analysis monetization metaverse+3

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Summary of Main Supplementary Explanations Questions and Answers: FY2025 Second Quarter GREE Results Briefing

The briefing outlines GREE’s performance and strategic outlook for FY2025 Q2, focusing on game releases, existing title dynamics, and the VTuber business. Pre‑registration for “Puella Magi Madoka Magica Magia Exedra” surpassed 500,000 by January 31, exceeding expectations and reinforcing confidence in the IP’s strong fan base. The company maintains an annual release cadence for new titles, but schedules are determined independently per project; delays in one title do not cascade to others. Existing flagship games such as *Heaven Burns Red* and *That Time I Got Reincarnated as a Slime: ISEKAI Memories* have experienced a deceleration in decline rates after three years, indicating sustained player engagement. In the VTuber segment, sales growth is driven by talent merchandise, live music events, and seasonal participation in Winter Comiket. Revenue has turned profitable as variable costs align with sales, while one‑time expenses—primarily 3D model production for new and returning talents—have increased quarterly, contributing to larger losses. Management anticipates that expanding the talent roster will stabilize one‑time costs and enhance profitability. Looking ahead, GREE projects monthly profitability in FY2026 with annual VTuber sales near ¥3.0 billion, followed by accelerated growth targets. The briefing underscores a balanced approach to new title development, sustained performance of legacy games, and a focused strategy for scaling the VTuber business while managing cost structures.

market-analysis game-publishing user-acquisition+2

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FY2025 Third Quarter Financial Results Briefing: GREE Holdings

GREE Holdings announced that the fiscal year 2025 third‑quarter results exceeded expectations, driven by robust performance across all four reportable segments. The company introduced a new IP Business segment on April 1, 2025, consolidating anime licensing and manga activities to reflect growing importance in content creation. Operating profit rose QoQ to ¥1.7 billion, with sales increasing across Game, Metaverse, IP, and DX businesses; the Investment Business recorded a ¥100 million loss on sales of ¥600 million. Foreign‑exchange and impairment losses contributed to a net income decline, yet the equity ratio remains above 60 % and debt‑to‑EBITDA stays near 3×, meeting the firm’s financial discipline targets. Key drivers include the launch of “Puella Magi Madoka Magica Magia Exedra” in the Game Business, which is expected to contribute earnings from Q4 onward, and record‑high operating margins in the Metaverse Platform segment due to improved commission structures. The VTuber arm achieved record sales, with merchandising gaining higher margin share. In the IP Business, anime production committees continue to expand, while merchandising and entertainment‑solution SaaS are in early rollout phases. The DX Business saw a slight YoY decline but QoQ growth, with new SaaS products and consulting projects building recurring revenue streams. Forecasts for FY 2025 anticipate a sales shortfall from delayed game releases but project operating profit above the ¥500 million target, rising to roughly ¥700 million. Medium‑term goals focus on sustaining growth in continuous‑growth segments, achieving profitability in the VTuber business by FY 2026, and expanding the IP and DX businesses into recurring‑earnings models.

market-analysis game-publishing japan

GREE

FY2018 Second Quarter Financial Results

Summary of main supplementary explanations questions and answers at the FY2025 First Quarter GREE results briefing held on November 5, 2024 PDF

FY2023 Fourth Quarter Financial Results

FY2021 Second Quarter Financial Results

FY2018 Third Quarter Financial Results

FY2014 First Quarter Financial Results

Summary of Questions and Answers: FY2017 2Q GREE Results Briefing

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

FY2014 Fourth Quarter Financial Results

FY2022 Second Quarter Financial Results Briefing

Summary of Main Supplementary Explanations Questions and Answers: FY2025 Second Quarter GREE Results Briefing

FY2025 Third Quarter Financial Results Briefing: GREE Holdings

GREE

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