GREE, Inc.
FY2024 First Quarter Financial Results
November 2, 2023
Copyright © GREE, Inc. All Rights Reserved.
Executive Summary
FY24 1Q
Financial Results
Overview
(Consolidated)
Game and | |
Overview | Anime |
Metaverse | |
Operational | |
DX | |
Commerce | |
Investment | |
Notes:
- DX = Digital Transformation
- Net sales ¥15.8 billion, operating income ¥1.2 billion, EBITDA ¥1.3 billion
- The Metaverse Business remained strong, consolidated operating income was in line with our forecast
- Successful 1.5yr anniversary event for Heaven Burns Red
- Net sales ¥11.7 billion (QoQ -¥1.1billion), operating income ¥1.6 billion (QoQ -¥0.5billion)
- Growth in Platform Business and successful revamping of earnings structure
- Net sales ¥2.0 billion (QoQ +¥0.1 billion), operating income ¥0.1 billion (QoQ +¥0.4 billion)
- Improved profitability in the Marketing DX Business
- Net sales ¥1.3 billion (QoQ +¥0.0 billion), operating income ¥0.2 billion (QoQ -¥0.0billion)
- Continued stable growth, especially from aumo, Inc.
- Net sales ¥0.3 billion (QoQ +¥0.0 billion), operating income ¥0.0 billion (QoQ +¥0.0 billion)
- Although there were no major distributions, continued stable investment and accumulated investment assets
- Net sales ¥0.6 billion (QoQ -¥3.5billion), operating income -¥0.2 billion (QoQ -¥3.6billion)
2
Copyright © GREE, Inc. All Rights Reserved.
Contents
- Financial Results Overview
- Operational Overview
- Appendix
Copyright © GREE, Inc. All Rights Reserved.
Contents
- Financial Results Overview
- Operational Overview
- Appendix
Copyright © GREE, Inc. All Rights Reserved.
1. Financial Results Overview (Consolidated)
FY24 1Q Financial Results Overview
Net sales ¥15.8 billion, operating income ¥1.2 billion, EBITDA ¥1.3 billion
FY24 | |||||
1Q | QoQ | YoY | |||
Net sales | 15.79 | -4.33 | -22% | -0.80 | -5% |
Operating | 1.23 | -3.73 | -75% | -0.36 | -23% |
income | |||||
Ordinary | 1.57 | -4.09 | -72% | -0.86 | -35% |
income | |||||
Net income | 1.18 | -3.93 | -77% | -0.63 | -35% |
EBITDA | 1.34 | -3.73 | -74% | -0.32 | -19% |
Notes:
- Net income: Profit attributable to shareholders of parent
- EBITDA = Operating income/loss + depreciation costs + amortization of goodwill
Billions of yen | |
FY23 | FY23 |
4Q | 1Q |
- 16.59
- 1.58
5.66 2.43
5.11 1.81
5.06 1.65
5
Copyright © GREE, Inc. All Rights Reserved.
1. Financial Results Overview (Consolidated)
Net Sales and Operating Income
Sales and income down QoQ due to the absence of contribution from the Investment Business
in the previous quarter
Billions of yen | 22.15 | |||||||||||
20.12 | ||||||||||||
16.59 | 16.58 | 24.6% | 15.79 | |||||||||
9.5% | 10.5% | 19.1% | 4.96 | 7.8% | ||||||||
4.22 | ||||||||||||
1.58 | 1.73 | 1.23 |
1Q | 2Q | 3Q | 4Q | ||
FY23 | |||||
Consolidated net sales | Net sales | ||||
(excluding Investment Business) | (Investment Business) | ||||
1Q
FY24
Consolidated operating income | Operating income | Consolidated operating income margin | ||||
(excluding Investment Business) | (Investment Business) | 6 | ||||
Copyright © GREE, Inc. All Rights Reserved.
1. Financial Results Overview (Consolidated)
Sales and Operating Income by Segment
FY23 | FY24 | |||||||||
1Q | 2Q | 3Q | 4Q | 1Q | ||||||
Game and | Sales | 12.88 | 12.16 | 15.85 | 12.77 | 11.72 | ||||
Anime | 1.88 | 1.65 | 2.06 | 2.06 | ||||||
income | 1.56 | |||||||||
Operating | ||||||||||
Metaverse | Sales | 1.69 | 1.64 | 1.52 | 1.82 | 1.96 | ||||
Operating | 0.13 | 0.01 | -0.24 | -0.24 | 0.12 | |||||
income | ||||||||||
DX | Sales | 1.29 | 1.46 | 1.44 | 1.25 | 1.30 | ||||
Operating | 0.25 | 0.28 | 0.32 | 0.18 | 0.18 | |||||
income | ||||||||||
Commerce | Sales | 0.35 | 0.33 | 0.31 | 0.29 | 0.31 | ||||
Operating | 0.01 | 0.00 | -0.00 | -0.01 | 0.01 | |||||
income | ||||||||||
Investment | Sales | 0.46 | 1.05 | 3.11 | 4.09 | 0.56 | ||||
Operating | -0.19 | 0.24 | 2.42 | 3.41 | -0.16 | |||||
income | ||||||||||
Consolidated | Sales | 16.59 | 16.58 | 22.15 | 20.12 | 15.79 | ||||
income | 1.58 | 1.73 | 4.22 | 4.96 | 1.23 | |||||
(including adjustments) | Operating |
Notes:
- Changes in reportable segments are reflected in past FY figures
Billions of yen
QoQ | YoY | ||
-1.05 | -8% | -1.17 | -9% |
-0.49 | -24% | -0.31 | -17% |
0.15 | +8% | 0.28 | +16% |
0.36 | --- | -0.02 | -11% |
0.05 | +4% | 0.01 | +1% |
-0.00 | -1% | -0.07 | -27% |
0.02 | +7% | -0.04 | -11% |
0.02 | --- | 0.00 | +22% |
-3.53 | -86% | 0.10 | +22% |
-3.57 | -105% | 0.04 | --- |
-4.33 | -22% | -0.80 | -5% |
-3.73 | -75% | -0.36 | -23% |
7
Copyright © GREE, Inc. All Rights Reserved.
1. Financial Results Overview (Consolidated)
1Q Operating Income Analysis
Sales and income down QoQ due to the absence of contribution from the Investment Business
in the previous quarter, resulting in operating income of ¥1.2 billion
Billions of yen
¥3.73bn
decrease
4.96 -4.33
+0.84 | -0.24 | 1.23 | ||||||||
Operating | ||||||||||
Increase in | Operating | |||||||||
income | Sales decline | Decrease in | fixed costs | income | ||||||
FY23 4Q | variable costs | FY24 1Q | 8 | |||||||
Copyright © GREE, Inc. All Rights Reserved.
1. Financial Results Overview (Consolidated)
1Q Cost Structure
Total costs declined by ¥0.6bn to ¥14.6bn due to lower variable costs (especially advertising costs)
Billions of yen
FY24 | Factors in change(QoQ) | FY24 | FY23 | ||||||
1Q | QoQ | YoY | 4Q | 1Q | |||||
Advertising | 1.01 | -0.35 | -0.27 | Decrease on winding down of promotions for Heaven Burns Red | 1.36 | 1.28 | |||
Commission fees, etc. | 4.49 | -0.56 | -0.46 | Decrease due to lower sales | 5.05 | 4.94 | |||
0.43 | 0.06 | 0.08 | 0.37 | 0.35 | |||||
Other | - | ||||||||
Total variable costs | 5.93 | -0.84 | -0.64 | 6.77 | 6.57 | ||||
Labor costs | 3.69 | 0.26 | 0.22 | Allocation of human resources to growth businesses, impact of bonuses, etc. | 3.43 | 3.47 | |||
0.58 | 0.01 | -0.04 | 0.57 | 0.61 | |||||
Rental costs | - | ||||||||
Depreciation | 0.11 | 0.01 | 0.04 | - | 0.11 | 0.07 | |||
Goodwill amortization | - | - | - | - | - | - | |||
4.25 | -0.03 | -0.02 | 4.28 | 4.28 | |||||
Other | - | ||||||||
Total fixed costs | 8.64 | 0.24 | 0.20 | 8.39 | 8.44 | ||||
Total costs | 14.56 | -0.60 | -0.44 | 15.16 | 15.01 | ||||
Notes: | 9 |
● Breakdown of 1Q FY24 commission fees, etc.: commission fees: ¥2.99 billion, royalties: ¥1.49 billion | |
Copyright © GREE, Inc. All Rights Reserved. | |
Contents
- Financial Results Overview
- Operational Overview
- Appendix
Copyright © GREE, Inc. All Rights Reserved.
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Disclaimer
Gree Inc. published this content on 02 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2023 06:02:52 UTC.