TOKYO, Japan—May 8, 2014—GREE today announced financial results for its fiscal 2014 third quarter ended March 31, 2014. GREE recorded net sales of ¥31.07 billion and operating income of ¥9.95 billion for the third quarter.

FY2014 Third Quarter Financial Summary

Billions of yen

3Q FY2014 2Q FY2014 QoQ change
Net sales1 31.07 32.62 -1.55
EBITDA2 11.67 10.96 +0.71
Operating income3 9.95 9.15 +0.80
Ordinary income 9.48 11.11 -1.63
Net income 4.74 7.42 -2.69


  • 1. Breakdown of 3Q FY2014 net sales: Paid service sales ¥29.07 billion; ad media sales ¥2.01 billion
  • 2. EBITDA=Operating income/loss + depreciation costs + amortization of goodwill
  • 3. In non-operating income, an exchange loss of ¥0.50 billion was recorded arising from translation losses on USD-denominated loans to overseas subsidiaries
  • Figures are rounded off

Financial Highlights

  • Net sales amounted to ¥31.07 billion compared to ¥32.62 billion in the fiscal 2014 second quarter
  • Operating income was ¥9.95 billion compared to ¥9.15 billion in the fiscal 2014 second quarter
  • Net income was ¥4.74 billion compared to ¥7.42 billion in the fiscal 2014 second quarter
  • Operating margin improved by 3.9 percentage points to 32.0%
  • Cut fixed costs by ¥1.78 billion or 12.6% QoQ through strict cost control; reduced overall costs by ¥2.35 billion or 10.0% including reductions in advertising costs

Business Update


  • Achieved quarterly profitability in overseas operations on a cash basis
  • Unable to maintain through March the recovery trend in overall sales seen up to the end of 2013 and start of 2014
  • Made steady progress with development of new first-party titles for the Japan market, opening pre-registration for several new titles
  • Consumption on smartphones grew to approximately 71% of total coin consumption

Web Game Business:*

  • Overall consumption decreased 8%. Although the decrease lessened, the impact of the decline in consumption on feature phones remained large
  • Achieved growth in existing first-party titles such as Monster Planet and Kaizoku Oukoku Columbus through UI/UX improvements and new features
  • Weaker sales on some other existing titles partly due to seasonal factors
  • Released four out of the seven partner titles targeted for the fiscal 2014 second half, including MONSTER HUNTER: ROAR OF CARDS, which has grown steadily since its release on February 19, surpassing 300,000 downloads in its first 23 days
  • Opened pre-registration for new first-party title LOST LAND TACTICS, which incorporates a map-based multi-player battle system. Also planning to open pre-registration in late May for another new first-party title Dragons' Party, a dungeon exploration RPG. The releases of both titles are planned for summer 2014
  • Continuing to strengthen development capabilities, targeting average of two new title releases per quarter

Native Game Business:*

  • Released Rage of the Immortals, GREE's second title developed in partnership with IUGO Mobile Entertainment Inc., on Android in March
  • In the U.S., achieved a slight increase in sales compared with the second quarter, and a 10% increase compared with the first quarter
  • Released Android version of War of Nations and localized versions of Knights & Dragons (five additional languages) in April on Android and iOS
  • In Japan, opened pre-registration for two new titles under the new domestic label Wright Flyer Studios: a side-scrolling action RPG and a casual real-time strategy game, both scheduled for release in summer 2014
  • Pokelabo released a new title, The SAMURAI Kingdom, a real-time battle game on iOS in January and on Android in February
  • Continued to boost development capabilities and experiment with new genres through the GREE Garage Production short-term prototype development program. Pazu Pazu Fantasy, the first title from the program, was released on Android in February and iOS in April and featured several times on Google Play™ and the App Store, earning positive user reviews. The second title from the program, Dungeon Flicker, released on Android in March and on iOS in April, is also enjoying positive user reviews and high retention. Full launches of both games are planned for fiscal 2015
  • Planning to release in fiscal 2014 fourth quarter new titles from U.S. and South Korea studios in new genres such as 3D strategy and 3D MORPG

New Business

  • Commerce and media: Preparing to launch new online services in commerce, travel and senior living-related sectors; on May 8 launched uttoku by GREE, a used luxury goods consignment service. In the entertainment business, continued to develop the trading card game business around the SiegKrone series by expanding sales channels
  • Advertising: Smartphone ad sales were firm on high demand. Steady progress in measures to improve ad product offering
  • Venture capital: Invested in two new companies: in February 2014, underwrote third-party allocation of shares by Viibar, the operator of a crowdsourcing site dedicated to high-quality, low-cost video production; in April 2014, underwrote third-party allocation of shares by online reservations platform provider Coubic Inc.
  • * Note on terminology:
    “Web game” refers to browser-based games for feature phones and smartphones. “Native game” refers to games provided as native apps for Android and iOS smartphones and tablets.

Fiscal 2014 Full-Year Earnings Forecast (July 1, 2013 – June 30, 2014)

Billions of yen

FY14 forecast
FY13 Actual
Net sales 129.0 152.2 -15%
Operating income 38.0 48.6 -22%
Ordinary income 39.3 53.3 -26%
Net income 20.0 22.5 -11%


For presentation materials and further information, visit GREE, Inc. - Investor Relations

About GREE, Inc.

GREE is a global mobile social company with businesses that include social gaming, social media, advertising, licensing and merchandising, and venture capital. Established in December 2004, GREE created the world's first mobile social game in 2007 and today is a global leader in free-to-play, reaching audiences around the world with its portfolio of first-party and partner titles. GREE has studios in Tokyo, San Francisco, Vancouver, and Seoul, and is listed on the Tokyo Stock Exchange (3632).

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