GREE : FY2024 3Q Presentation Material

GREE : FY2024 3Q Presentation Material

GREE, Inc.

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3632

JP3274070006

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Sector Social Media & Networking

May 08, 2024 at 02:03 am EDT

GREE, Inc.

FY2024 Third Quarter Financial Results

May 8, 2024

Executive Summary

FY24 3Q

Financial Results

Overview

(Consolidated)

	Game and
Overview	Anime
Metaverse

Operational
DX
Commerce

	Investment

Notes:

DX = Digital Transformation

Net sales ¥17.2 billion, operating profit ¥2.5 billion, EBITDA ¥2.6 billion
- Achieved QoQ growth in sales and profit and results surpassed expectations
Successful 2nd anniversary events for Heaven Burns Red, QoQ growth in sales and profit
- Net sales ¥13.0 billion (QoQ +¥2.5 billion), operating profit ¥2.6 billion (QoQ +¥1.3 billion)
Strong performance in the Platform Business and VTuber Business
- Net sales ¥1.6 billion (QoQ -¥0.2billion), operating profit ¥0.1 billion (QoQ +¥0.2 billion)
QoQ growth in sales and profit on contribution from growth in the Advertising Business
- Net sales ¥1.5 billion (QoQ +¥0.2 billion), operating profit ¥0.3 billion (QoQ +¥0.1 billion)
Weak performance owing to the impact of the algorithm update
- Net sales ¥0.3 billion (QoQ -¥0.0billion), operating profit ¥0.0 billion (QoQ -¥0.0billion)
Continued stable investment and accumulated investment assets
- Net sales ¥0.8 billion (QoQ +¥0.4 billion), operating profit ¥0.0 billion (QoQ +¥0.1 billion)

Contents

Financial Results Overview
Operational Overview
Appendix

Contents

Financial Results Overview
Operational Overview
Appendix

1. Financial Results Overview (Consolidated)

FY24 3Q Financial Results Overview

Net sales ¥17.2 billion, operating profit ¥2.5 billion, EBITDA ¥2.6 billion

	FY24

	3Q	QoQ		YoY


Net sales	17.17	2.93	+21%	-4.98	-22%

Operating	2.52	1.71	+211%	-1.70	-40%
profit

Ordinary	3.29	2.80	+566%	-1.11	-25%
profit

Net profit	2.48	2.94	---	-0.75	-23%


EBITDA	2.59	1.70	+190%	-1.71	-40%

Notes:

Net profit: Profit attributable to shareholders of parent
EBITDA = Operating profit/loss + depreciation costs + amortization of goodwill

	Billions of yen

FY24	FY23

2Q	3Q

14.24 22.15

0.81 4.22

0.49 4.40

-0.46 3.23

0.89 4.30

1. Financial Results Overview (Consolidated)

Net Sales and Operating Profit

Sales and profit rose QoQ

Billions of yen

22.15

	20.12
		24.6%	15.79		17.17


19.1%			14.24

4.22	4.96		7.8%	5.7%		14.7%


			2.52




			1.23
			0.81

3Q4Q

FY23

Consolidated net sales

(excluding Investment Business)

FY24

Net sales

(Investment Business)

1. Financial Results Overview (Consolidated)

Sales and Operating Profit by Segment

		FY23					FY24

		3Q			4Q		1Q		2Q	3Q
Game and	Sales	15.85			12.77		11.72		10.44	12.95

Anime		2.06			2.06	1.56	1.35
profit			2.60
	Operating
Metaverse	Sales	1.52			1.82	1.96	1.79	1.61

Operating	-0.24			-0.24	0.12	-0.12	0.08

	profit
DX	Sales	1.44			1.25	1.30	1.35	1.54

Operating	0.32			0.18	0.18	0.22	0.28

	profit
Commerce	Sales	0.31			0.29	0.31	0.34	0.32

Operating	-0.00			-0.01	0.01	0.02	0.01

	profit
Investment	Sales	3.11			4.09	0.56	0.44	0.84
Operating	2.42			3.41	-0.16	-0.10	0.02

	profit

Consolidated	Sales	22.15			20.12	15.79	14.24	17.17
profit	4.22			4.96	1.23	0.81	2.52
(including adjustments)	Operating

Notes:

Changes in reportable segments are reflected in past FY figures

Billions of yen

QoQ	YoY

2.51	+24%	-2.90	-18%
1.25	+93%	0.54	+26%

-0.17	-10%	0.09	+6%
0.20	---	0.32	---

0.19	+14%	0.09	+6%
0.06	+27%	-0.04	-13%

-0.02	-6%	0.01	+4%
-0.00	-14%	0.02	---

0.40	92%	-2.27	-73%
0.12	---	-2.40	-99%


2.93	+21%	-4.98	-22%
1.71	+211%	-1.70	-40%

1. Financial Results Overview (Consolidated)

3Q Operating Profit Analysis

Profit rose QoQ with operating profit reaching ¥2.5 billion

Billions of yen

¥1.71bn

increase

+2.93

-0.94

-0.29

2.52

Increase in

variable costs

fixed costs

0.81

Operating

Increase in

profit

sales

profit

FY24 2Q

FY24 3Q

1. Financial Results Overview (Consolidated)

3Q Cost Structure

Total costs up ¥1.3 billion QoQ, to ¥14.7 billion

Billions of yen

			FY24			Factors in change（QoQ）

			3Q	QoQ	YoY


		Advertising	1.50	0.32	-1.58	Increase on strengthening of promotions for Heaven Burns Red

		Commission fees, etc.	4.63	0.69	-1.44	Increase due to higher sales
			0.44	-0.08	0.06
		Other	-

	Total variable costs	6.56	0.94	-2.96

		Labor costs	3.63	-0.04	0.16	-
			0.54	-0.02	-0.03
		Rental costs	-

		Depreciation	0.07	-0.01	-0.01	-

		Goodwill amortization	-	-	-	-
			3.84	0.36	-0.44
		Other	Increase due to higher outsourcing costs

	Total fixed costs	8.09	0.29	-0.32

Total costs	14.65	1.22	-3.28

FY24	FY23
2Q	3Q

1.18 3.08

3.93 6.06

0.52 0.38

5.63 9.52

3.68 3.47

0.57 0.57

0.08 0.08

3.48 4.28

7.80 8.40

13.43 17.93

Notes:	9
● Breakdown of 3Q FY24 commission fees, etc.: commission fees: ¥3.07 billion, royalties: ¥1.56 billion

1. Financial Results Overview (Consolidated)

Revised Dividend Policy and Dividend Forecast

In line with new dividend policy, distributions of ¥16.5 per share

Revised Dividend Policy

Dividend Forecast

Previous	Maintain DOE of around 2%,
consolidated dividend payout ratio of 20% or
policy	higher

	Maintain DOE of around 3%,
Revised	consolidated dividend payout ratio of 30%or
policy	higher
(However, we set a maximum consolidated
	dividend payout ratio of 70%)

	FY24 Forecast	FY23 Results

Dividend	June 30, 2024	June 30, 2023
record date


Per-share	¥16.5	¥11
dividend

Notes:	10
● The 2024 dividend plan is scheduled for approval at the Board of Directors meeting scheduled for August 2024.

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Disclaimer

Gree Inc. published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2024 06:02:25 UTC.

	1st Jan change	Capi.
GREE, INC.	-10.88%	543M
META PLATFORMS, INC.	+32.16%	1,187B
TENCENT MUSIC ENTERTAINMENT GROUP	+63.37%	22.94B
MATCH GROUP, INC.	-18.88%	7.87B
WEIBO CORPORATION	-19.00%	2.16B
BUMBLE INC.	-19.06%	1.51B
NEXTDOOR HOLDINGS, INC.	+30.16%	960M
ZIGEXN CO., LTD.	+18.08%	408M
NEW WORK SE	-31.47%	329M
INKEVERSE GROUP LIMITED	+13.25%	231M

1st Jan change

Capi.

GREE, INC.

-10.88%

543M

META PLATFORMS, INC.

+32.16%

1,187B

TENCENT MUSIC ENTERTAINMENT GROUP

+63.37%

22.94B

MATCH GROUP, INC.

-18.88%

7.87B

WEIBO CORPORATION

-19.00%

2.16B

BUMBLE INC.

-19.06%

1.51B

NEXTDOOR HOLDINGS, INC.

+30.16%

960M

ZIGEXN CO., LTD.

+18.08%

408M

NEW WORK SE

-31.47%

329M

INKEVERSE GROUP LIMITED

+13.25%

231M

Market Closed - Japan Exchange Other stock markets 02:00:00 2024-05-23 am EDT			5-day change	1st Jan Change
508 ^JPY	+2.21%		+0.79%	-10.88%

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Consolidated operating profit

Operating profit

Consolidated operating profit margin

(excluding Investment Business)

(Investment Business)