Japanese social mobile gaming company GREE (TYO: 3632) has announced its FY14 Q2 financials for the three months ending 31 December 2013.

Net sales were ¥32.6 billion ($310 million), down 7 percent year-on-year.

Net incomes was ¥7.4 billion ($70 million), down 2 percent.

GREE said that during the quarter, sales bottomed out in October and started to recover from November.

Worm has turned

The company has experience a difficult 12 months, in which it's restructured both in Japan and in its international offices, shutting those in China and the UK.

It's also cancelled 27 games as it tries to deal with a Japanese market that's in fast transition from browser mobile games to native apps.

GREE said it had saved ¥2.1 billion ($20 million) through strict cost-cutting measures. Yet, native games only made up 27 percent of the consumption of its platform virtual currency in Q2.

Even on smartphones, 60 percent of coin consumption comes from mobile browser games.

Grass is greener

Looking to the future, GREE says it will release 24 games in H1 2014, and around 21 in H2 2014, of which 24 will be native games; 14 released in Japan and 10 internationally.

Indeed, the one area of GREE's business that is performing well is oversea markets (especially North America), which generated $200 million during the 2013 calendar year, and $72 million during Q2.

This is mainly though the legacy games from Funzio, which GREE acquired for $210 million in May 2012, and Knights & Dragons, a co-production with IUGO, which is generating around $5 million in terms of 30-day revenue.

GREE ended the period with cash and equivalents worth ¥53.7 billion ($510 million).

[source: GREE IR]