Axel Mark announced its financial results for the third quarter of fiscal year 2024, revealing significant declines due to reduced advertising demand from major customers in the domestic e-book and game sectors. The company reported sales of 1,333 million yen (USD 9.6 million), down 17.7% from the same period last year, reflecting challenges in its core advertising business.
Operating loss widened to 212 million yen (USD 1.5 million), compared to a loss of 51 million yen in the same period last year. The ordinary loss increased to 148 million yen (USD 1.1 million), and net loss surged to 290 million yen (USD 2.1 million) from 47 million yen last year. Sales in the advertising business fell 29.0% year-on-year to 1,124 million yen (USD 8.1 million), with the segment recording a loss of 130 million yen, compared to a profit of 38 million yen last year.
The decline was driven by reduced advertising budgets from key customers, exacerbated by waning stay-at-home demand. While Axel Mark sought to counter this with overseas advertising, the challenging business climate took a toll. The company plans to broaden its customer base and continue its efforts in contract development and system maintenance to recover profits. In the trading card business, sales reached 186 million yen (USD 1.3 million), with a marginal segment profit of 660,000 yen (USD 4,800). The company is expanding its “Trading Card Yokocho” vending machine service and preparing to open company-owned stores, aiming for future growth in e-commerce.
Axel Mark revised its full-year earnings forecast downward. Sales are now expected to be 1,582 million yen (USD 11.4 million), a 31.5% decrease from the previous forecast and 26.2% lower than last year. The company anticipates a wider operating loss of 332 million yen (USD 2.4 million) and an ordinary loss of 228 million yen (USD 1.7 million). The net loss is projected at 411 million yen (USD 3.0 million), reflecting ongoing pressures in the advertising market and the need for strategic adjustments.
