Axel Mark Inc. reported a quarterly loss of ¥268 million ($1.9 million) as the Tokyo-based digital content company continues its strategic pivot away from its struggling advertising business.
The firm posted revenue of ¥512 million for the second quarter of fiscal 2025, with no year-over-year comparison available as the company transitions to consolidated financial reporting. Operating losses reached ¥230 million, while ordinary losses widened to ¥270 million.
Axel Mark, historically known for mobile gaming and internet advertising, cited ongoing challenges in its core advertising segment alongside costs related to recent acquisitions. The company is betting on a structural transformation centered on trading card and healthcare operations to reverse its fortunes.
The outlook remains challenging, with Axel Mark projecting full-year revenue of ¥1.03 billion for fiscal 2025. The company expects annual losses to deepen significantly, forecasting an operating loss of ¥568 million and a final loss of ¥766 million.
Investors appear cautious about the firm’s turnaround strategy, with Axel Mark’s stock trading near ¥91 on the Tokyo Stock Exchange, significantly below its 52-week high of ¥250.
