Japanese mobile gaming company Colopl Inc. returned to operating profitability in its third quarter, driven primarily by investment gains from selling shares in job platform Timee rather than improvements in its core entertainment business.
The Tokyo-based company reported operating profit of ¥609 million ($4 million) for the nine months through June, reversing a ¥695 million loss in the same period last year. Revenue climbed 3.8% to ¥19 billion ($123.5 million), according to results released Wednesday.
The turnaround masked continued struggles in Colopl’s main gaming operations, which posted an operating loss of ¥825 million ($5.4 million) compared with a ¥528 million loss the previous year. Revenue from the entertainment division fell 5.8% to ¥16.9 billion ($109.8 million) as older titles declined and new releases required increased marketing spending.
Colopl’s investment unit generated ¥2.1 billion ($13.7 million) in revenue, primarily from disposing of shares in Timee, which went public in July 2024 and has since achieved a market value exceeding $1 billion. The investment business swung to ¥1.4 billion ($9.1 million) in operating profit from a ¥168 million loss.
Despite the operational gains, Colopl recorded a net loss of ¥601 million ($3.9 million) after booking ¥1.4 billion ($9.1 million) in impairment losses on investment securities. The company declined to provide full-year guidance, citing rapid changes in the business environment that make reliable forecasting difficult.
The company’s blockchain gaming venture Brilliantcrypto accumulated ¥930 million ($6 million) in operating losses during the period, highlighting ongoing struggles to monetize Web3 initiatives while its established mobile titles like “Dragon Quest Walk” continue generating revenue.
