GREE Reports FY2013 First Quarter Results

TOKYO, JAPAN - November 14, 2012 - GREE today announced financial results for its fiscal 2013 first quarter ended September 30, 2012. GREE recorded net sales of ¥37.9 billion and operating profit of ¥15.7 billion for the first quarter.

As existing games in GREE's lineup gain momentum, GREE has a string of exciting new titles in the pipeline and continues to ramp up development, boosting its global development capabilities with the new Vancouver studio it announced during the first quarter.

GREE Platform continues to grow alongside GREE's partnerships around the world. GREE is expanding the content available on GREE Platform by working with partners ranging from independent developers in the U.S. and other regions to publishers of world-famous game IP. GREE continues to improve and expand its platform infrastructure and user reach in collaboration with telecommunications companies and other Internet firms.

First Quarter FY2013 Financial Summary

Millions of yen, rounded down
FY2013 Q1 FY2012 Q1
Net sales 37,935 30,432
EBITDA* 16,744 16,961
Operating profit 15,750 16,646
Ordinary profit 15,250 16,528
Net profit 9,069 9,449
  • *Operating profit + depreciation costs + amortization of goodwill

Financial Highlights

  • Net sales for the first quarter totaled ¥37.9 billion, an increase of 25% compared with ¥30.4 billion in the first quarter of fiscal 2012.
  • Operating profit was ¥15.7 billion, a decrease of 5% compared with ¥16.6 billion in the first quarter of fiscal 2012
  • Paid services sales amounted to ¥34.6 billion, an increase of 26% compared with ¥27.5 billion in the first quarter of FY2012. During the first quarter, paid service sales grew month-on-month, while new games have also begun to contribute to sales
  • Advertisement sales were ¥3.3 billion, an increase of 14% compared with ¥2.9 billion in the first quarter of fiscal 2012. Advertisement sales fell slightly on the previous quarter because, although smartphone advertising was firm, it was temporarily unable to completely offset declining feature phone advertising sales
  • Cost of sales was ¥4.6 billion, a year-on-year increase of 123% compared with ¥2.1 billion in the first quarter of fiscal 2012, reflecting higher labor costs and other costs concomitant with our expansion
  • Sales, general & administrative costs were ¥17.4 billion, an increase of 50%, reflecting increased costs for personnel, marketing, and paid commissions

Business Highlights

  • Monthly net sales bottomed in July and have entered a gradual recovery trend
  • Released new in-house titles to increase our lineup of IP-based games and card battle games, and implementing new game designs
  • Established licensing and merchandising business with GREE Entertainment Products, Inc. aimed at maximizing original IP
  • Announced more than 30 titles at TOKYO GAME SHOW exhibit, including games based on world-famous IP
  • Strengthened foundations of global business by forming partnerships with major South Korean online game company NCSoft and leading French mobile affiliate network MobPartner

FY2013 Business Strategy

  • Launch multiple new games based on globally popular IP major game titles
  • Leverage strategic business partnership with Pokelabo to secure the top position in App Store gross sales, while sharing knowledge and user bases, and generating synergies among development teams
  • Expand user reach in Japan through partnership with Yahoo! JAPAN, directing Yahoo! JAPAN smartphone users to GREE Platform and introducing Yahoo! Wallet as a means of payment for GREE Platform social game purchases
  • Accelerate development of simulation and card battle game titles for the NA and European markets towards the holiday season
  • Expand user reach overseas through partnerships on customer flow and direct carrier billing with telecoms provider SingTel

FY2013 Earnings Forecasts (announced August 14, 2012)

  • Net sales are projected to be in the range of ¥195 billion to ¥205 billion
  • Operating profit is projected to be in the range of ¥74 billion to ¥84 billion
  • Ordinary profit is projected to be in the range of ¥74 billion to ¥84 billion
  • Net profit is projected to be in the range of ¥46 billion to ¥52 billion

About GREE, Inc.

GREE is a global mobile social gaming company at the forefront of mobile technology. GREE is focused on building the world's leading mobile social gaming ecosystem for users and developers, while creating and supporting unique free-to-play game content. GREE is continuing to expand globally and has offices in Tokyo, San Francisco, London, Singapore, Seoul, Beijing, Amsterdam, Dubai, Sao Paolo, and Vancouver.

GREE and the GREE logo are trademarks or registered trademarks of GREE, Inc. in Japan and/or other countries. All other trademarks are the property of their respective owners.

Contact Information

Press Contacts
Roppongi Hills Mori Tower, 6-10-1 Roppongi, Minato-ku, Tokyo, Japan
Twitter: @GREE_pr_jp
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