serkan AT kantan-games.co.jp

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Report: GREE Likely To See First Quarterly Loss Since 2008 IPO [Social Games]

Business daily The Nikkei reports that GREE‘s operating profit for the April-June 2012 quarter has dropped by 20% q-o-q to around US$255 million.

That would still be an increase of over 100% y-o-y (and an incredible number by itself), but the number would mean that GREE saw, for the first time since its IPO in 2008, a quarter-on-quarter decline.

The Nikkei has also learned that sales have seemed to drop around 10% q-o-q to US$537 million.

Good news for GREE: according to the report, GREE’s operating profit will likely stand at around US$1.07 billion for the entire fiscal year (ending in June 2012), up 170% and in the projected range of US$1.02 billion and US$1.15 billion. This was anticipated a few days ago by GREE CEO Yoshikazu Tanaka and isn’t a big surprise.

US$1.07 billion profit: almost entirely with social games, on mobile phones only, and basically in Japan only.

The Nikkei notes that this number is higher than that of e-commerce behemoth Rakuten (80 million users in Japan alone), which ended its fiscal year in December 2011 with US$0.9 billion in profit.

 

Serkan Toto About Serkan Toto
I am the CEO & Founder of Kantan Games, Inc., a Tokyo-based game industry consultancy focused on the Japanese market. Please subscribe to updates on this site via RSS or Email.