GREE’s net income climbs threefold to $167M on $545M in revenue during holiday quarter
GREE said it more than tripled its net income from a year ago to 12.7 billion yen ($167.3 million) and nearly did the same for its overall revenue with net sales reaching 41.5 billion yen ($545.3 million).
Just for perspective, GREE’s annual revenue will probably end up being about twice what Zynga pulled in last year. GREE expects that it will make more than half a billion U.S. dollars in net income for the full fiscal year. (Meanwhile, Electronic Arts reported a $205 million net loss yesterday for the most recent quarter.)
The key to GREE’s remarkable growth has been the rise of paid services like avatar customization, which contributed 38.3 billion yen ($502.8 million), and unexpectedly strong growth in the company’s home market of Japan. Advertising revenue also grew slightly to 3.3 billion yen ($42.5 million). This split between virtual goods and advertising is very similar to what we’ve seen in Zynga’s revenues, where the San Francisco-based company earns just 6 percent of its revenue from advertising.
For the full fiscal year, GREE expects to see net sales of 160 to 170 billion yen ($2.1 to 2.2 billion) and a net income of 44 to 50 billion yen ($578 to $657 million). GREE says it doesn’t expect to see any sales revenue from Europe, U.S. or the rest of Asia for the fiscal year. The company is pouring resources into expanding overseas after spending $104 million last year to buy mobile-social gaming network OpenFeint. It’s also aggressively stepping up its headcount in the San Francisco Bay Area.
GREE says its plan this quarter is to combine its footprint in Japan with that of OpenFeint’s to create a brand-new, unified mobile-social gaming network that will debut by the middle of the year. It will have a reach of 190 million users and more than 7,500 games.
That’s a turnabout for the company, which originally said it would have two separate networks. In December, the company said it announced 12 games and 12 partners for the platform and yesterday it revealed that partners like Amazon and Microsoft would help provide support for developers.
The company’s shares rose 10.1 percent today to 2,499 yen or $34.81, giving the company a market capitalization of 578.6 billion yen ($7.6 billion).
February 2nd, 2012 at 6:22 pm
[...] Feb. 2, GREE confirmed it would be launching its global mobile-social game network in the fourth quarter of its fiscal year. Inside Mobile Apps [...]
February 8th, 2012 at 9:14 am
[...] ahead of DeNA in terms of both sales and net income. Earlier this month GREE reported net sales of 41.5 billion yen ($545.3 million) and net income of 12.7 billion yen ($165 million) for the same [...]
March 15th, 2012 at 9:03 am
[...] to U.S. gaming companies like Zynga, the company is almost absurdly profitable. The company made 12.7 billion yen ($152.7 million) on 41.5 billion yen ($497.8 million) in revenue in the last q…. And those numbers were about triple what they were a year earlier. Zynga in contrast did $37.2 [...]
March 15th, 2012 at 9:26 am
[...] absurdly profitable. GREE has triple the profit margins that Zynga does. (Crazy.) The company made 12.7 billion yen ($152.7 million) on 41.5 billion yen ($497.8 million) in revenue in the last q…. And those numbers were about triple what they were a year earlier. Zynga in contrast did $37.2 [...]
March 15th, 2012 at 9:35 am
[...] absurdly profitable. GREE has triple the profit margins that Zynga does. (Crazy.) The company made 12.7 billion yen ($152.7 million) on 41.5 billion yen ($497.8 million) in revenue in the last q…. And those numbers were about triple what they were a year earlier. Zynga in contrast did $37.2 [...]
March 15th, 2012 at 10:42 am
[...] absurdly profitable. GREE has triple the profit margins that Zynga does. (Crazy.) The company made 12.7 billion yen ($ 152.7 million) on 41.5 billion yen ($ 497.8 million) in revenue in the last…. And those numbers were about triple what they were a year earlier. Zynga in contrast did $ 37.2 [...]
March 15th, 2012 at 2:04 pm
[...] 昨四半期だけで 415億円（4億9780万ドル）の売上に対して127億円（1億5270万ドル）の利益を計上している。この数字は前年同期のほぼ3倍だ。 [...]
May 1st, 2012 at 7:09 pm
[...] GREEはなぜFunzioを買ったのか。GREEは日本の数十億ドル規模のモバイルゲーム会社で、欧米市場への進出を伺っている。その利益率はZyngaを圧倒するが、自国の市場が飽和状態のため成長の余地がなくなりつつある。GREEはその対策の一環として昨年ゲーミングネットワークのOpenFeintを1.04億ドルで買収した。 [...]