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FY2024 Fourth Quarter Financial Results Briefing
The briefing presents GREE, Inc.’s FY2024 financial performance and strategic outlook. Net sales for the fiscal year reached ¥61.3 billion, operating profit stood at ¥6.0 billion, and EBITDA was ¥6.3 billion, aligning with expectations. Quarterly results for 4Q mirrored forecasts: ¥14.1 billion in sales, ¥1.4 billion operating profit, and ¥1.5 billion EBITDA. A revised dividend policy raised the year‑end payout to ¥16.5 per share, targeting a 30 % payout ratio and a dividend‑of‑earnings ratio near 3 %. Segment restructuring is underway; the Commerce Business merges into DX Business starting FY2025 to clarify B2B positioning. Continuous‑growth businesses—Metaverse and DX—are positioned as core earnings engines, with a target CAGR of 120–140 % for operating profit. Long‑term investment businesses, notably Game and Anime, face higher volatility; FY2025 forecasts anticipate sales of ¥60.2 billion and operating profit of ¥3.8 billion, with a temporary dip in 1Q due to rising development costs. The Metaverse segment achieved ¥6.5 billion in sales and ¥1.3 billion operating profit, driven by platform gains and a 190 % YoY rise in VTuber merchandise. DX Business reported ¥1.75 billion sales and ¥0.22 billion profit, with a shift toward SaaS solutions to replace labor‑intensive outsourcing. Investment Business generated modest profit of ¥0.15 billion in 4Q, with assets under management rising to ¥35.3 billion. Overall, GREE projects FY2025 sales of ¥60–61 billion and operating profit around ¥3.8 billion, while medium‑term targets for FY2026 and FY2027 are moderated due to adjusted release schedules in Game and Anime. The company emphasizes stable earnings from core segments, aggressive investment in new titles, and restructuring of B2B services to secure recurring revenue streams.
GREE
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Summary of Main Supplementary Explanations Questions and Answers: FY2023 Fourth Quarter
The briefing outlines GREE’s strategic direction for FY2023‑FY2026, emphasizing a diversified portfolio beyond core gaming. In the fourth quarter, the company began categorizing its development pipeline into in‑house, regional expansion, joint development, and licensing, noting increased collaboration prospects with major IP holders such as Heaven Burns Red. Release dates remain undisclosed for FY2024 titles, reflecting a focus on quality over speed. GREE views the smartphone game market as increasingly less profitable due to larger development scales, prompting a shift toward higher‑margin ventures. Within the Metaverse Business segment, Platform and B2B sub‑segments have achieved profitability; profits are being reinvested into the VTuber and Web3 businesses. The company aims for all four Metaverse sub‑segments to be profitable by FY2026, contributing significantly to group earnings. Synergies between the VTuber and Platform businesses are currently indirect, driven by international talent recruitment for REALITY. Future cross‑promotions are anticipated once both units mature. Financial outlooks indicate a consolidated operating income of approximately ¥1.0 billion for Q1 FY2024, with a full‑year target of ¥4.0–5.0 billion for FY2024, excluding new game or anime contributions and investment income. For FY2026, the company projects similar operating income levels while targeting a 10 % return from its Investment Business and aiming for half of non‑investment earnings to derive from non‑game, non‑anime sources. This reflects a medium‑term strategy of expanding stable revenue streams beyond traditional gaming.
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