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FY2012 Q4 Financial Report: GREE Grows Year-On-Year, Slows Down Quarter-On-Quarter [Social Games]


Following Mobage operator DeNA last week, GREE released its financial report for the April-June quarter (Q4 of fiscal 2012) today.

The company has seen net sales grow to 40 billion yen (US$510 million), which is up 90% year-on-year. Profit shot up, too, but both sales and profit took a nose dive on a quarter-on-quarter basis – mainly due to the kompu gacha (complete gacha) regulation and weaker game sales.

DeNA’s growth q-o-q was flat.

In FY2012 as a whole, GREE’s net sales ballooned to about 158 billion yen, which translates to US$2 billion (up 147% y-o-y):

The whole report is probably relevant for just about anyone reading this, but I found it interesting how GREE puts their internationalization efforts front and center in the document.

As I recently mentioned, GREE’s made-in-Japan titles aren’t doing well at all in the US. GREE uses the word “beta” for these titles and says in the report that promotion will be ramped up soon. (As a side note: GREE actually started marketing the made-in-Japan titles internationally, too. Fishing Star, for example, was promoted via “Free App A Day”, but that brought the game to just #496 in the US App Store’s free app ranking. The Japanese titles are promoted using billboards in the US, too. In addition, there seem to be no spill-over effects from marketing the US games Zombie Jombie and Alien Family whatsoever.)

Sales outside Japan are growing, but GREE doesn’t indicate absolute numbers:

Outside Japan, the plan going forward is to boost KPI, introduce new games (and grow existing ones), and cover more countries and languages:

Again, the report is available through this link.

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.