Financial Highlights
Net sales amounted to ¥35.3 billion, a decrease of 5% compared to ¥37.0 billion in the fiscal 2013 fourth quarter
Operating profit was ¥9.8 billion, an increase of 26% compared to ¥7.8 billion in the fiscal 2013 fourth quarter
The operating profit margin improved by 6.6 percentage points quarter on quarter to 27.7%
Cut fixed costs by ¥1.9 billion or 12% quarter on quarter through strict cost control; met, ahead of schedule, the target
reduction committed to in the fiscal 2013 fourth quarter announcement
Total expenses were ¥25.5 billion, a decrease of 12% compared to ¥29.2 billion in the fiscal 2013 fourth quarter
A total extraordinary loss of ¥5.0 billion was recorded following an extraordinary gain of ¥0.2 billion recorded on the sale of investment securities and an extraordinary loss of ¥5.2 billion stemming from a re-examination of assets related to certain titles and the implementation of a voluntary retirement program and others
(Cost cutting, losses, declines)
Business Update
Overall
Coin consumption on smartphones increased by approximately ¥1.6 billion compared to the fiscal 2013 fourth quarter
This was not sufficient to cover the decline in coin consumption on feature phones, resulting in a decrease in overall coin consumption
(I wonder why they aren't offering a percentage? I guess 1.6 billion sounds like a huge increase.)
Web Game Business:*
Coin consumption on third-party smartphone titles grew to 1.3 times that of the fiscal 2013 first quarter as titles released during the previous fiscal year contributed to growth
Completed adjustments to development operations in order to address a halt in the flow of first-party releases and ensure ability to renew product offering on an ongoing basis
(third party growing, first party doing nothing ATM)
Native Game Business:*
Maintained steady flow of new releases with titles such as Dragon Realms and Beyond the Dead (no one cares)
Overseas operations on track to achieve monthly profitability within 2013**
In Japan, sales were flat due to a lack of growth from some card battle games
Started development on titles for Japan market in new genres other than card battle games
New Business
Advertising: Spun off advertising business, integrating ad network, reward and affiliate, and media businesses and operations from development to sales into new subsidiary Glossom, Inc. (established November 1, 2013, following a change in the trade name of GREE group company Atlantis Co., Ltd.)
Venture capital: In August 2013, invested in KAIZEN platform Inc., operator of planBCD, a user-friendly platform for website UI improvement
Licensing and merchandising: GREE Entertainment Products, Inc. released the second series of the SiegKrone trading card game, Shingeki no Kyojin (Attack on Titan) in September 2013
(sold a division and invested in another one)