GREE financials: net profit down 65% to ¥4.7 billion, new strategy moving forward

GREE - one of Japan's leading social and mobile developers - has released its third-quarter financial results. For the quarter ended March 31, the company's profit has slumped, prompting a change in strategy moving forward.

GI.biz reports that for the quarter GREE's revenue dropped 18% year-on-year from ¥46.1 billion to ¥37.8 billion, while the net profit fell 65% year-on-year from ¥13.4 billion to ¥4.7 billion.

The site added that part of this decline can be attributed to an extraordinary loss of ¥4.03 billion across GREE's Japan base and its foreign subsidiaries, stemming from cancelled projects, in which assets were reportedly binned.

Moving onward, GREE has revised its financial projections for the full fiscal year, and it now expects to gain revenue of ¥150 billion, down from ¥160 billionm and net profit of ¥24 billion down from ¥37 billion.

The company will employ a strategy of "selection and concentration", which will see it produce a smaller number of games with an increased emphasis on quality, and greater input from its US arm.

Finally, a report on Chinese site Sina Tech, translated by ZDNet confirms that GREE will close down its Beijin arm permanently on June 28.