Axel Mark Inc., a Japanese digital advertising company, reported a wider annual loss as its core advertising business struggled amid weakening demand from gaming and e-book clients.
The Tokyo-based company posted a net loss of yen 388.6 million ($2.6 million) for the year ended September, compared with a yen 102.4 million loss a year earlier. Sales dropped 26% to yen 1.58 billion.
The company is pivoting away from its troubled advertising business toward trading cards and healthcare services. Axel Mark plans to open its first trading card retail store in Tokyo’s Ikebukuro district by March 2025, expanding beyond its current vending machine operations.
To accelerate growth in new segments, Axel Mark established a healthcare subsidiary in September and is seeking medical device sales licenses. The company also announced plans to raise yen 1.21 billion through stock warrants to fund expansion.
“The advertising environment remains challenging, particularly in gaming and e-book sectors,” the company said in a statement. Axelmark forecasts a narrower loss of yen 181 million on sales of yen 2.31 billion for fiscal 2025.
The company also announced a board restructuring, with three new outside directors joining while seven current directors, including Chairman Satoshi Iino, will step down.
