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Colopl Sees Profit Growth Despite ¥1.45 Billion Securities Loss

Investment unit boosts revenue as Dragon Quest Walk continues to deliver strong performance
Japan
c 3668.TSE Mid and Small Cap 2000 Games 75 Tech 350 Entertainment 100
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Colopl Inc. reported increased revenue and profits for the second quarter of fiscal 2025, despite recording a significant investment securities valuation loss of ¥1.45 billion (US$9.7 million). The Japanese mobile game developer saw its sales rise 10.6% year-on-year to ¥14.04 billion (US$94.1 million), while operating profit surged 301.1% to ¥1.41 billion (US$9.4 million).

The company’s investment development business was the standout performer, with revenue jumping 467.8% to ¥2.03 billion (US$13.6 million), primarily from the sale of Timee shares. This strength offset challenges in the entertainment segment, where revenue declined 2.7% to ¥12.01 billion (US$80.5 million) and operating results swung to a ¥167 million loss from a ¥479 million profit a year earlier.

“Dragon Quest Walk,” developed by Colopl for Square Enix, continued to be a major contributor to the company’s performance. The location-based mobile game, which has generated over US$2 billion since its 2019 launch, remained popular despite the long-term revenue decline affecting some of Colopl’s other titles. Recently launched games “Fesba+” and “Isekai∞Isekai” contributed to sales but couldn’t fully compensate for the reduced performance of aging titles.

Colopl maintained its policy of not providing full-year guidance, citing the rapidly changing business environment and difficulty in calculating reasonable forecasts.

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