GREE's Financials

[Idiosyncrasy]

I've been waiting to see gree's annual report and they finally released it not too long ago. It explains a lot, but also shows some questionable decisions.

http://v4.eir-parts.net/DocumentTemp/20151214_112405932_2q54hq45n3ixy5y1nvmhuyzx_0.pdf

Most notable is that they had a loss in operating income for this first time in FY 2015. Though net sales did decline, they attribute a lot of the loss to a write down of acquisitions including Funzio Inc. Apparently the portfolio of games upon whose forums you're posting are not performing as they intended. That means the squeeze for cash is not going to stop. If the games are continued (questionable), then the cash grab will likely intensify.

Another thing I question is their financial stewardship with their cash. Though they had a net loss for the year, their dividend payout ratio is at a record high. Apparently the 10 year anniversary means more to the board than financial results. Not so sure about the shareholders (see below).

Lastly, how about those risk diversification strategies? So they intend to be the leader in social online gaming. How do they do that? By developing a home and related-services platform and a health & fitness platform. Yup.

There's a lot of other good stuff in the link above. To keep this from getting tl;dr, just check out some of the charts and notes. Makes for good bathroom reading.

How are investors reacting? This next article is interesting.

http://www.financialmagazin.com/gree-incorporated-tokyo-otcmktsgrezf-short-interest-increased-by-9999-99-2/

Short sells have increased by 9999.99%. Their stock price is downtrending and has underperformed the S&P500 by 18.61%.

For the mods, I talked about Funzio games and their outlook, so this thread is related to CC and thus relevant to the forum.

[Dipstik]

I just tap on things when the goals tell me to.

[Babytway]

I just tap on things when the goals tell me to.
and when its over its over, find a new one to tap

[sister morphine]

I had to close that second link sharpish to avoid narcolepsy! ;)

As for the directors; they're probably similar to some other companies (hello, RBS before the crash) in that their primary goal is to meet their targets to qualify for their fat bonuses. The long term health of the company is of secondary interest because even if it fails they'll be sure to hop into another well-paid position. Just need to avoid criminality or such incompetence as to get them debarred.

[Max Power]

Long term health? Is anyone really expecting long term health with an app gaming company? This is fairly recent technology, gets people to engage in behavior that is not sustainable, in an arena that constantly gets new technology.

Freemium games where people have to spend hundreds of dollars to be even remotely competitive are the Beanie Babies of the new millennium. Or the cabbage patch dolls. Or the pet rock. It's a fad.

[Dipstik]

and when its over its over, find a new one to tap

I'm already into Puzzle and Dragons. You should give it a shot.

[Lolsies]

Wow, this was actually very informative. Thank you for that.

I think that GREE knows what's happening to their financial situation, so they're trying even harder to get more money, which deters even more players from continuing to play.

[Winnson]

I think the barrier to entry is way way way to high for an actual new player to enter now.

I guess the longevity of this game made that inevitable.

Has Gree got any exciting new games coming out, or are they focusing on solely Japanese stuff now?

[plavine]

Wow, this was actually very informative. Thank you for that.

I think that GREE knows what's happening to their financial situation, so they're trying even harder to get more money, which deters even more players from continuing to play.

If they want more money , they need to give the players on the fence a reason to spend it . I.e. - give the 2nd and third tier players the hope that if they purchase stuff that they will be able to finish an event

[TMI]

When is next 40% off gold sale? I'm running low.

[sister morphine]

Long term health? Is anyone really expecting long term health with an app gaming company? This is fairly recent technology, gets people to engage in behavior that is not sustainable, in an arena that constantly gets new technology.

Freemium games where people have to spend hundreds of dollars to be even remotely competitive are the Beanie Babies of the new millennium. Or the cabbage patch dolls. Or the pet rock. It's a fad.
I did say of the company, not the game. Games come and go; we all know that, but the company shouldn't disappear in a flash if properly run. ;)

[sister morphine]

Wow, this was actually very informative. Thank you for that.

I think that GREE knows what's happening to their financial situation, so they're trying even harder to get more money, which deters even more players from continuing to play.
I've been saying it's down to stupid short-termism for ages now. The top players got too strong too fast relative to others, so Gree had to make the events tougher to keep them spending there, which simply deterred all the rest even quicker. They've been caught in their own trap.

[Max Power]

I did say of the company, not the game. Games come and go; we all know that, but the company shouldn't disappear in a flash if properly run. ;)

I understand that, but I am not seeing a ton of new games to make up for all the old games that are broken. My advice to Gree is to invest in real estate while you still can. Maybe a commodity that is sustainable, not a borderline illegal game set that plays to insecurities and gambling addictions. Maybe they are, I don't know, but what they are doing right now in the app market might have a ten year window at best, and they are 5 in.

[sister morphine]

I understand that, but I am not seeing a ton of new games to make up for all the old games that are broken. My advice to Gree is to invest in real estate while you still can. Maybe a commodity that is sustainable, not a borderline illegal game set that plays to insecurities and gambling addictions. Maybe they are, I don't know, but what they are doing right now in the app market might have a ten year window at best, and they are 5 in.
Pretty much every game they've started since (and including) Monster Quest has shut down.

[LüK€¥]

When is next 40% off gold sale? I'm running low.

Is this a serious question?

[LüK€¥]

Wow, this was actually very informative. Thank you for that.

I think that GREE knows what's happening to their financial situation, so they're trying even harder to get more money, which deters even more players from continuing to play.

It's evident GREE communicates with their member of staff.

Betcha you have to pay 1 gold to open/close the game

[TMI]

Is this a serious question?

Ask and you shall receive. :cool:

[LüK€¥]

Ask and you shall receive. :cool:

Hahaha, well am skeptical and I think no

[andyt]

I like the line in their report "By listening to our user comments, we are able to make our games better and better each year". :rolleyes:

[Winnson]

So please, post in the feedback thread from that fired guy made last July.

YOU KNOW THEY'RE LISTENING!

[montecore]

Wow, this was actually very informative. Thank you for that.

I think that GREE knows what's happening to their financial situation, so they're trying even harder to get more money, which deters even more players from continuing to play.

Please don't name and shame Gree. Happy gaming mate.