Japanese mobile game developer coly Inc. reported a deeper quarterly loss despite revenue growth, as marketing expenses for its new title “Break My Case” weighed on earnings.
The Tokyo-based company posted a net loss of ¥626 million ($4.3 million) in the nine months through October, compared with a ¥899 million loss a year earlier. Revenue rose 31% to ¥4.3 billion ($29.5 million), driven by the May release of “Break My Case,” which exceeded download expectations.
Operating losses narrowed to ¥596 million from ¥898 million, as heavy advertising spending and costs related to entertainment industry partnerships offset gains from the new game launch.
The company, known for titles like “Stand My Heroes” and “Promise of Wizard,” maintained its fiscal year revenue forecast at ¥6.5 billion but didn’t provide profit guidance. Coly plans to expand its intellectual property through stage productions, cast events and merchandise sales.
The game maker is preparing for the 10th anniversary of “Stand My Heroes” while readying new content for “Promise of Wizard,” which will mark its fifth year. The latter title is scheduled for an anime adaptation in January 2025.
For the third quarter alone, the company returned to profitability for the first time in three quarters.
