GREE Holdings Inc (3632) investor relations material

Executive summary

• Q1 FY27 net sales were ¥11,877m, down 0.9% YoY; operating profit fell 7.3% to ¥969m and parent-attributable profit fell 98.9% to ¥12m.

• Operating profit exceeded expectations despite declining QoQ; the dividend policy shifted to DOE of ~5%, and the FY27 per-share forecast rose to ¥27.5.

• RINDO Entertainment became a consolidated subsidiary in October 2026, adding an estimated ¥6.0bn to FY27 sales and lifting the sales estimate.

• The Investment Business was exited and its reportable segment abolished; resources were directed toward growth and recurring-earnings initiatives.

Financial highlights

• Gross profit was ¥5,755m versus ¥6,009m, and SG&A was ¥4,786m versus ¥4,964m.

• Ordinary profit was ¥835m, down 46.7% YoY; profit before tax was ¥1,005m and income taxes were ¥910m.

• EBITDA was ¥0.98bn, down 36% QoQ and 15% YoY; total costs rose ¥0.44bn QoQ to ¥10.91bn on higher advertising, labor and fixed costs.

• Comprehensive income was ¥273m versus ¥857m in Q1 FY2026.

Outlook and guidance

• FY27 forecast: sales ¥57.0bn, up 17.0% YoY; operating profit ¥3.9bn, down 13.6% YoY.

• Q2 FY27 estimates: sales ¥13.66bn, up 15% QoQ; operating profit ¥0.70bn, down 28%, reflecting game-title weakness and upfront costs.

• RINDO is estimated to add ¥6.0bn to FY27 sales; profit contribution and M&A costs, including goodwill amortization, are expected to have limited combined impact on operating profit.

• Ordinary and parent-attributable net profit forecasts were suspended because investment-related valuation gains and losses are difficult to estimate; significant growth is expected to resume from FY28.