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FY2023 First Quarter Financial Results
The FY2023 first‑quarter results show a net sales volume of ¥16.6 billion, operating income of ¥1.6 billion and EBITDA of ¥1.7 billion, reflecting a decline from the previous year’s strong performance driven by hit titles such as *Heaven Burns Red*. Net sales fell 4.3 % QoQ and operating income dropped 2.3 % QoQ, largely due to reduced sales in the Internet and Entertainment Business after FY22’s peak. Operating income margin contracted from 23 % in Q4 FY22 to 9.5 % in Q1 FY23, with variable costs rising by ¥2.0 billion to ¥15.0 billion. Cost structure analysis indicates advertising and commission fees were the largest expense categories, with commission fees decreasing by ¥1.27 billion QoQ due to lower sales. Labor and rental costs remained relatively stable, while other operating expenses fell slightly. Total cost reductions of ¥2.0 billion QoQ helped offset revenue declines. Strategic initiatives highlighted include aggressive investment in the Metaverse Business, where global downloads of *REALITY* surpassed 10 million across 63 countries, and expansion of content communication features. The Entertainment segment continued to leverage *Heaven Burns Red* through storyline extensions, anniversary campaigns, and merchandise collaborations, maintaining high App Store rankings. The Investment and Incubation arm reported a total AUM of ¥78.9 billion, up ¥7.3 billion QoQ, driven by gains in venture fund valuations and new investments in Japanese and U.S. startups. Overall, the quarter demonstrates a shift from FY22’s high‑growth momentum to a more stable income outlook, with continued focus on IP development, Metaverse expansion, and venture investment to sustain long‑term earnings.
GREE
Report
Summary of main supplementary explanations questions and answers at the FY 2020 Second Quarter GREE results briefing held on February 3, 2020 PDF
The briefing focused on GREE’s financial outlook, investment performance, and strategic initiatives across its entertainment and advertising segments. Management projected operating income for the third quarter of FY2020 to range between ¥0.5 billion and just under ¥1.0 billion, reflecting confidence in continued strong results. The rise in ordinary and net income during the second quarter was attributed to gains from listed companies and venture‑capital investments, with expectations of further upside in portfolio securities. Marketing efforts for the game “Another Eden” were highlighted, noting a doubling of overseas users through an IP collaboration with Persona 5 and enhanced digital advertising operations. In the Advertising and Media business, earnings trends were described as solid, with a target of achieving profitability within FY2020. The Live Entertainment division emphasized ongoing enhancements to the REALITY virtual live‑distribution platform, with monthly investments in development and an undecided schedule for large‑scale promotions. Regarding the broader VTuber market, management characterized it as both a talent‑based business and a live‑streaming distribution service, observing growth from both angles. The anticipated impact of 5G technology was cited as a catalyst for further expansion in the sector. Overall, the briefing underscored GREE’s focus on diversified revenue streams, strategic investment in emerging platforms, and a proactive marketing approach to sustain growth across its core business segments.
GREE
