Gree, the Japanese mobile and social game publisher, has posted record sales for the full financial year 2012, growing 147%, year on year as they posted sales of ¥158 billion ($2 billion), a new record for the company.
Despite increased operating costs as the company continues its global expansion, net profits have seen a similar increase of 163% to ¥47.97 billion ($608.8 million) year on year.
Eariler this year, Gree went global and had a presence in 169 countries worldwide. They also acquired Funzio, the creators of iOS hit Modern War, establishing a strong position within the U.S. market. This continued growth has come at a small cost, however, as Japan, Gree’s domestic market, has slowed slightly; the last quarter for the period ending June 30, 2012, were slightly down from the quarter before. Also contributing to this shrinkage is an aggressive campaign against real-money trading and the complete ban on complete gacha.
As a result, this leaves the company wanting to consolidate the domestic market over the next year whilst still continuing growth overseas by introducing new genres that have previously experienced great success domestically.
The company predicts that they will be continuing their growth over the course of the next year, with estimates of a 23-29.6% increase in sales for the full year.
Gree’s financials are embedded at the bottom of this article.
Analysis: It’s hard to look at these figures and then understand why some people look at mobile and social gaming with such disdain. With these kinds of figures, companies like Gree are here to stay, and I personally have no problem with that.
Gree have created a number of enjoyable titles that appeal to a wide range of people who may not even be into gaming. I’ve checked out a game or two of theirs, and I didn’t come out of it feeling somewhat dirty like I have with a number of Gameloft titles.
Opening a London office in addition to the ones located in Japan, America, China, and South Korea; having deals with both Ubisoft and Gameloft, two big players in their own respective markets; and having a presence at E3 for the first time are significant achievements for the company, and they’re a testimony to the success the company has run into as of late. I’d expect Gree are incredibly happy with where they’re sitting right now.
All I can say is congratulations to Gree on your continued success.