Crooz Corp. swung to a loss in the nine months through December as its GameFi business unit struggled with weak sales, overshadowing growth in its IT outsourcing operations.
The Tokyo-based company reported a net loss of 492 million yen ($3.3 million) for the period, compared with a profit of 1.18 billion yen a year earlier. Revenue edged up 2.3% to 10.96 billion yen.
The GameFi division posted an operating loss of 812 million yen, reversing from a 94 million yen profit in the previous year, as gaming revenue plunged 44.8%. The unit’s poor performance offset gains in IT outsourcing, where sales jumped 54.4% despite a small operating loss.
The company’s e-commerce segment saw profits tumble 82.7% even as revenue grew 10.2%. The media business also weakened, with both sales and profits declining by more than 34%.
Crooz declined to provide full-year guidance, citing difficulties in making reasonable forecasts due to rapidly changing business conditions and its investments in new ventures. The results highlight the challenges facing Japanese gaming companies as they attempt to expand into blockchain-based gaming services.
