Creek & River Inc. reported a 2.3% increase in revenue to 25.8 billion yen ($172 million) for the second quarter ending August, despite challenges in its gaming division. The Tokyo-based creative services firm faced headwinds from reduced projects from major game publishers and longer contract closure times in recruitment services.
However, the company’s bottom line took a hit, with net profit falling 14.4% to 1.47 billion yen. This decline was attributed to the largest-ever intake of new graduates and investments in original content slated for release later this fiscal year.
Creek & River’s gaming segment showed signs of recovery after an industry-wide slowdown, with new contracts gradually increasing. The company is addressing the sector’s labor shortage through its C&R Creative Academy and by actively recruiting foreign talent.
Looking ahead, Creek & River maintained its full-year forecast, projecting a 10.4% increase in sales to 55 billion yen and a 16.6% rise in net profit to 3.1 billion yen for the fiscal year ending February 2025. The company’s strategic investments and diversification efforts aim to position it for long-term growth in the creative services market.
