GREE Inc. reported an operating loss of 100 million yen (US$670,000) in its fiscal first quarter as valuation losses in its investment business overshadowed improvements in its gaming and metaverse operations.
The Tokyo-based company recorded 12.9 billion yen in revenue for the quarter ended September, while both operating profit and EBITDA fell into negative territory at -100 million yen each. A steep 800 million yen loss from investment valuations, particularly in cryptocurrency holdings and maturing fund positions, drove the quarterly decline.
The gaming division showed resilience, with the Chinese version of “Heaven Burns Red” performing well. GREE’s metaverse business maintained steady growth in both platform services and VTuber operations, with the latter seeing a 70% year-on-year revenue increase after adding 12 new talents.
Looking ahead, GREE expects a rebound in the second quarter, driven by anniversary events for major game titles. The company is preparing to launch an English version of “Heaven Burns Red” in partnership with Yostar Games while continuing aggressive investments in its VTuber business, which is projected to turn profitable by 2026.
The DX business remained flat but in line with expectations, posting sales of 1.75 billion yen and operating profit of 210 million yen for the quarter.
