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Colopl Narrows Loss as Stock Sales Offset Gaming Revenue Decline

The company returned to operating profitability after cost cuts but recorded an annual loss on investment write-downs
Japan
c 3668.TSE Mid and Small Cap 2000 Games 75 Tech 350 Entertainment 100
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Tokyo-based mobile game developer Colopl narrowed its fiscal 2025 net loss to ¥306 million ($2 million) from ¥1.87 billion a year earlier, as asset sales offset declining revenue from aging smartphone titles.

The company recorded revenue of ¥25.9 billion ($168.6 million) for the year ended September, essentially flat compared to the previous period. Operating profit swung to ¥1 billion ($6.5 million) from a ¥1.2 billion loss, while ordinary profit reached ¥1.8 billion ($11.7 million) compared with a ¥947 million loss.

Dragon Quest Walk, the location-based game developed under license from Square Enix, remained the group’s primary revenue driver despite increased competition in the mobile gaming sector. The title has generated over $2 billion in lifetime revenue since its 2019 launch.

Two new releases — Isekai∞Isekai and Shinmagari no Tsukuyomi — failed to compensate for revenue declines from older titles experiencing extended lifecycles. The entertainment division posted ¥23.3 billion in sales, down 4.9%, with an operating loss of ¥180 million narrowing from ¥1.3 billion.

The investment segment provided relief, with revenue surging 77.8% to ¥2.7 billion on sales of stakes in workforce platform Timee and entertainment firm BitStar. Operating profit jumped to ¥1.2 billion. However, Colopl recorded impairment losses on other holdings.

The company declined to provide full-year guidance, citing rapid shifts in the mobile gaming landscape that make reliable forecasting difficult.

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