Ateam Inc. returned to profitability in its fiscal first quarter as aggressive cost management helped overcome declining revenue from its key digital marketing business.
The Nagoya-based company posted a net income of 129 million yen ($876,000) for the quarter ended October, compared with a loss of 142 million yen a year earlier. Revenue fell 5% to 5.68 billion yen, the company said in a statement Thursday.
The digital marketing division, which accounts for over 80% of total sales, saw revenue decline 4.2% as major financial sector clients reduced advertising budgets amid heightened competition. However, the unit’s profit surged 242% after Ateam optimized marketing spending and narrowed losses in its direct-to-consumer business.
The entertainment unit, focused on mobile gaming, also turned profitable despite an 8.6% revenue drop, helped by increased contract development work for other companies.
Ateam maintained its full-year forecast for operating profit to climb 78% to 1 billion yen on revenue of 25 billion yen. The company expects net income to fall 41% due to one-time factors from the previous year.
