Mobile game developer coly Inc. reported a 39% jump in quarterly revenue while posting narrower losses, as the Tokyo-based company benefits from its latest title and an anime tie-in with an existing franchise.
The company, which develops games including “Stand My Heroes” and “Promise of Wizard,” posted revenue of ¥1.25 billion ($8.6 million) for the three months through April, driven by its new game “Break My Case” and increased user engagement from a “Promise of Wizard” anime series that aired earlier this year.
Despite the revenue growth, coly recorded an operating loss of ¥230 million ($1.6 million), though that represented a significant improvement from the ¥498 million loss a year earlier. The company attributed continuing losses to increased development costs for collaborations with major entertainment firms and investments in new intellectual property.
The results come as Japan’s mobile gaming market faces headwinds, with total revenues declining 17% year-on-year to $5.3 billion in 2024, largely pressured by a weakening yen. The competitive landscape has intensified as established publishers like Bandai Namco dominate revenue charts with franchise-based titles.
Coly implemented a direct billing system called “coly ID” to reduce platform fees, which helped improve gross margins despite higher operational costs. The company declined to provide annual guidance, citing difficulty predicting revenue from upcoming releases and volatile market conditions.
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