GREE Reports FY2015 Third Quarter Results

TOKYO, Japan—April 28, 2015—GREE today announced financial results for its fiscal 2015 third quarter ended March 31, 2015. GREE recorded net sales of ¥21.99 billion and operating income of ¥4.91 billion for the third quarter.

FY2015 Third Quarter Financial Summary

Billions of yen

FY15 3Q FY15 2Q QoQ change FY14 3Q YoY change
Net sales1 21.99 24.12 -8.8% 31.07 -29.2%
EBITDA2 6.01 6.18 -2.9% 11.67 -48.5%
Operating income 4.91 4.73 +3.8% 9.95 -50.6%
Ordinary income3 4.93 7.00 -29.6% 9.48 -48.0%
Net income 1.67 (7.66) 4.74 -64.8%


  • 1. Breakdown of FY15 third quarter net sales: Paid service sales ¥20.60 billion; ad media sales ¥1.39 billion
  • 2. EBITDA=Operating income/loss + depreciation costs + amortization of goodwill
  • 3. Fluctuation reflects currency exchange gain in FY15 second quarter
  • Figures are rounded off

Financial Highlights

  • Net sales amounted to ¥21.99 billion compared to ¥24.12 billion in the fiscal 2015 second quarter
  • Operating income was ¥4.91 billion compared to ¥4.73 billion in the fiscal 2015 second quarter
  • EBITDA was ¥6.01 billion compared to ¥6.18 billion in the fiscal 2015 second quarter
  • A net income of ¥1.67 billion was recorded compared to a net loss of ¥7.66 billion in the fiscal 2015 second quarter
  • Cut total costs by ¥2.3 billion or 12% quarter on quarter
  • The operating margin improved by 2.7 percentage points to 22.3%
  • Fiscal 2015 full-year forecast: net sales of ¥93.5 billion; operating income of ¥20.0 billion

Business Update


  • Net sales declined quarter on quarter mainly due to a softening of sales of browser-based games; increased operating income quarter on quarter through strict cost control
  • Consumption on smartphones grew to approximately 77% of total coin consumption
  • Steady transition toward phase of generating new revenue streams through the production of hit titles; sustaining capacity to invest in the medium to long term while maintaining firm earning power and a robust balance sheet

Game Business

Japan studios:

  • Made further progress with shift to native iOS and Android game production through expansion of and improvements to development capabilities; expanded native game development operations in Japan to 20 production lines and 600 people
  • Drove continued growth in revenues from Wright Flyer Studios title Shometsu Toshi through effective mass-media promotion and content updates
  • Released Pokelabo and SEGA Games co-developed title POITTO HERO on Android and iOS in April 2015; reached 400,000 downloads within one week of release
  • Started pre-registration in April for LINE TOWER RISING, the first title developed in GREE's collaboration with LINE Corporation
  • Localized versions of Pokelabo action RPG CROSS SUMMONER planned for release in English-language markets, Europe and South Korea during the fourth quarter
  • In browser-based games, increased user activity using new events and collaborations around popular IP; good performance in partner-developed titles in popular genres and based on popular IP

Overseas studios:

  • Moved ahead with preparations to release in key European countries the localized versions of long-run titles from our U.S. studio, starting with War of Nations (scheduled for release during the fourth quarter in Italian, Spanish, German, Turkish, French, and Russian)

Non-game Businesses

  • Home-related services: Monthly orders of online fixed-price renovation services Ie Plus (developed in-house) and Renoco (operated by sekaie Inc., which GREE acquired in December 2014) have reached ¥100 million. Plan to accelerate growth through the integration of these services, while enhancing the product line-up and expanding regional coverage in Japan

  • Health & fitness: Launched fitness lesson subscription service Lespas in Japan on April 6. Expanding affiliate studios in Tokyo; planning to expand to other locations in Japan in the near future

FY2015 Full-year Earnings Forecast (July 1, 2014 – June 30, 2015)

GREE has revised its outlook for the fiscal year ending June 30, 2015 as follows:

  • Net sales are projected to be ¥93.5 billion (revised from previous forecast of ¥98.0 billion in light of performance during the third quarter)
  • Operating income is projected to be ¥20.0 billion
  • Ordinary income is projected to be ¥24.0 billion
  • Net income is projected to be ¥1.0 billion (revised from previous forecast of ¥0.0 billion)


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

About GREE, Inc.

GREE is a global technology company with businesses that include mobile gaming, social media, advertising, 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

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