Ateam Inc. returned to profitability in the second quarter despite revenue declines, as cryptocurrency gains offset weaknesses in its digital marketing business.
The company reported revenue of ¥11.5 billion ($76.7 million) for the six months ended January, down 3.1% from a year earlier. However, Ateam swung to an operating profit of ¥92 million after posting a ¥185 million loss in the same period last year.
Net income reached ¥559 million, compared with a ¥193 million loss a year earlier, boosted by ¥547 million in cryptocurrency valuation gains recorded by its subsidiary Paddle. This gain overshadowed a ¥432 million provision for sales promotion costs at the same unit.
The media and solutions segment, Ateam’s largest business, saw revenue fall 2.4% to ¥8.34 billion, with segment profit declining 20% to ¥249 million. The company cited budget cuts from major financial media clients and increased advertising from competitors.
Both the direct-to-consumer and entertainment divisions returned to profitability despite revenue declines, with the entertainment segment posting a ¥250 million profit after recording a ¥51 million loss a year earlier.
Ateam maintained its full-year forecast, projecting revenue of ¥25 billion and operating profit of ¥1 billion for the fiscal year ending July 2025.
