GREE's revenues are growing, but profits are falling

The operating profit of the Japanese company for the last quarter fell significantly compared to last year. GREE attributes the drop to large expansion costs. 

Today, the Japanese giant of the gaming market, GREE, shared its financial results for the last financial quarter with the press. Unlike the results of its main competitor in the home and global markets – DeNA, the Tokyo-based company’s performance is not striking in terms of growth.

The company’s sales amounted to $473 million, which is 25% more than last year, but operating profit, amounting to $195.8, fell by 5%. 

This result, which looks against the background of a 38% increase in DeNA’s operating profit (up to $ 254 million), is somewhat strange, the company explains the large expansion costs, the rise in the cost of internal production costs (they increased by 123% over the year) and the increase in management costs (by 50%). 

In fiscal year 2013 (actually, now the company has it) the company forecasts revenue of $2.47 billion and operating profit of $990 million.