Japanese mobile game developer coly Inc. turned profitable in the latest quarter after years of losses, bucking broader industry headwinds that have weighed on the sector’s performance.
The Tokyo-based company posted ¥9 million ($64,000) in net profit for the six months through July, a dramatic turnaround from a ¥687 million loss a year earlier. Revenue climbed 23.5% to ¥3.38 billion ($24.1 million) as the firm capitalized on the first anniversary of its “Break My Case” title and an anime adaptation of its “Promise of Wizard” franchise.
Operating losses narrowed significantly to ¥95 million from ¥670 million in the previous period, though the company continues to invest heavily in development partnerships with larger entertainment firms. The improved performance comes as Japan’s mobile gaming market declined 17% year-on-year in the first half of 2024 to $5.3 billion, largely due to pressures from the weakening yen.
Coly’s “Break My Case” game achieved record sales during its May anniversary event, according to the company’s statement. The title, launched in 2024, helped drive growth alongside sustained interest in “Promise of Wizard,” which benefited from its television anime broadcast earlier this year.
The company’s media division also performed well, expanding into merchandise sales and cross-industry collaborations including a limited-time cafe in Tokyo’s Ikebukuro district. Revenue gains were amplified by the firm’s push toward its “coly ID” web payment system, which reduced transaction fees more than anticipated.
However, sustainability questions remain. The Japanese mobile gaming market faces ongoing challenges from inflation, regulatory pressures, and intense competition, while coly continues withholding full-year guidance. Management cited difficulties in projecting revenues for upcoming collaborations and new releases in the volatile mobile gaming environment.
The company’s stock has gained ground this year, trading at ¥1,538 as investors bet on its intellectual property strategy and partnerships with major entertainment companies.
