Tokyo-based IT services and mobile games operator Appirits Inc. reported a nine-month operating loss of ¥124 million ($827,000) for the February-October period, reversing from a ¥23 million profit a year earlier. The company attributed the decline to two loss-making contracts in its web solutions business.
Revenue rose 18.1% to ¥7.62 billion ($50.8 million), but the top-line gains failed to offset project-related charges. Net loss widened to ¥123 million from ¥57 million in the prior-year period.
The web solutions unit posted a 20% revenue increase to ¥2.77 billion, though the segment’s profit slipped 1.7%. Management indicated it had assigned junior engineers to positions beyond their capabilities, contributing to the project overruns, and is now recruiting mid-career and senior staff to stabilize operations.
The gaming division, which operates titles including “Kemono Friends 3” and the Nogizaka46-themed “UNI’S ON AIR,” saw segment profit drop 35.8% despite a 12.8% revenue gain. The company noted that expenses previously allocated as corporate costs were reassigned to this unit following a reorganization.
Appirits maintained its full-year forecast calling for revenue of ¥10.55 billion and operating profit between ¥103 million and ¥172 million. The company expects its loss-making projects to conclude by the first quarter of fiscal 2027.
