Gree Holdings Inc. reported a 72% drop in third-quarter net profit as its mainstay gaming division faltered amid a lack of new titles.
The Tokyo-based company’s profit fell to ¥900 million (US$6 million) for the nine months ended March, while revenue declined 8.6% to ¥43.14 billion (US$287 million). Operating profit decreased 18.6% to ¥3.71 billion (US$24.7 million).
The games and animation segment, which accounts for over two-thirds of total revenue, saw sales drop 17% and operating profit plunge 38.7% as the company relied heavily on existing smartphone titles without major new releases during the period.
In contrast, Gree’s metaverse business emerged as the company’s growth engine, with sales increasing 15.6% and operating profit surging nearly sevenfold to ¥555 million (US$3.7 million). The company has been expanding its smartphone metaverse platform “REALITY” both domestically and internationally while improving cost efficiency.
The investment division also reversed its year-earlier losses, generating a ¥120 million profit thanks to successful exits from venture capital investments in internet and IT startups.
Gree continues to withhold its full-year forecast, citing the rapidly changing business environment and unpredictable market conditions affecting its investment portfolio.
