Japanese mobile game developer Colopl reported a wider operating loss in its fiscal first quarter as revenue from aging game titles declined and marketing costs increased.
The Tokyo-based company posted an operating loss of 730 million yen ($4.9 million) in the three months ended December, compared with a 324 million yen loss a year earlier. Revenue fell 5.6% to 5.31 billion yen.
The gaming division, which accounts for nearly all of Colopl’s sales, saw revenue drop 6.4% despite contributions from Square Enix’s Dragon Quest Walk and the company’s own White Cat Project franchise. The unit’s operating loss more than doubled to 643 million yen.
Colopl’s investment arm recorded a wider loss of 87 million yen after booking impairment charges on some holdings, even as revenue more than doubled from asset sales.
The company, known for smartphone games in Japan, withheld its full-year forecast citing rapid changes in the business environment. The results highlight growing challenges for mobile game makers as they struggle to maintain player engagement for aging titles while facing rising marketing costs.
