Bank of Innovation posted a 23% jump in operating profit for the nine months ended June as the Japanese mobile game developer dramatically reduced advertising expenditure while revenue from its flagship title Memento Mori declined.
Operating profit climbed to ¥1.64 billion ($11.1 million) from ¥1.33 billion a year earlier, the Tokyo-based company said Monday. Revenue fell 12.5% to ¥9.43 billion ($63.4 million) as management prioritized cost efficiency over user acquisition.
The company, which trades under ticker 4393, cut advertising spending to roughly 70% of prior-year levels after determining that marketing returns had deteriorated. The strategy helped offset revenue declines stemming from the natural aging of its core Memento Mori role-playing game, which generates approximately 90% of total sales.
Bank of Innovation organized fan engagement events in Tokyo, Kyoto and Nagoya to celebrate Memento Mori’s 2.5th anniversary, seeking to maintain player loyalty without costly digital advertising campaigns. Net income remained nearly flat at ¥849 million ($5.7 million).
The earnings come as Bank of Innovation faces a ¥1 billion lawsuit from Sega, which alleges patent infringement related to gacha mechanics in Memento Mori. The litigation, filed in October, caused the company’s shares to tumble 17%.
Management declined to provide fiscal 2025 guidance, citing rapid industry changes and the need for flexible investment decisions. The company has previously indicated plans for global expansion with two large-scale RPG titles currently in development.
Founded in 2006, Bank of Innovation went public in 2018 and specializes in smartphone games featuring 2D graphics for the Japanese market.
