GREE Holdings Corp. returned to profitability in its second quarter as gaming revenue rose and its investment arm delivered substantial returns, marking a significant turnaround from losses in the previous period.
The Tokyo-based company reported a net profit of 2.6 billion yen ($17.3 million) for the October-December quarter, reversing a 1.64 billion yen loss in the previous three months. Revenue climbed 20% quarter-on-quarter to 15.58 billion yen ($104 million), according to an earnings presentation.
GREE’s gaming and anime segment, which accounts for about 64% of sales, saw revenue increase 10% from the previous quarter to 9.93 billion yen, driven by anniversary events for key titles including “That Time I Got Reincarnated as a Slime: Isekai Chronicles.”
The company’s metaverse business reached record quarterly sales of 2.08 billion yen, with its VTuber operations—which manages virtual YouTube personalities—experiencing particularly strong growth through merchandise sales and live events. However, upfront costs for new talent acquisitions and 3D model production widened losses in this division.
GREE’s investment unit delivered the most dramatic improvement, generating 1.04 billion yen in operating profit after recording an 810 million yen loss in the first quarter, primarily due to major distributions from portfolio funds.
Looking ahead, GREE expects third-quarter profits to decline as marketing expenses increase for new game launches, including the highly anticipated “Mahou Shoujo Madoka Magica Magia Exedra,” which has already surpassed 500,000 pre-registrations. The company is also raising external capital for new investment funds, with first closes targeted for mid-2025.
