Japanese online gaming company Aeria Inc. swung to an annual loss as revenue declined across its main business segments and new content development costs weighed on profitability.
The Tokyo-based company reported a net loss of ¥739 million ($4.9 million) for the year ended December 2024, compared with a profit of ¥480 million a year earlier. Revenue dropped 15.5% to ¥19.2 billion.
The content division, which develops mobile games and sells character merchandise, posted an operating loss of ¥390 million, reversing from a ¥490 million profit in the previous year. The unit’s sales fell 6.7% to ¥9.9 billion as existing mobile games underperformed and new titles failed to meet expectations.
The IT services segment’s losses more than doubled to ¥94 million as FirstPenguin, its e-publishing affiliate platform, saw declining payment processing and advertising revenue. The unit’s sales decreased 14.7% to ¥1.8 billion, despite stable earnings from data services provider Air Net.
Even the traditionally steady asset management division, which handles real estate and investment operations, reported weaker results. The unit’s operating profit fell 5.9% to ¥440 million on a 24.8% revenue decline to ¥7.5 billion, mainly due to construction delays in properties intended for sale.
Looking ahead, Aeria projects a return to profitability in 2025 with a net income of ¥300 million on revenue of ¥22.5 billion, though investors may remain cautious given the company’s recent performance across its gaming portfolio and development initiatives.
