Japanese tech firm CROOZ swung to an operating loss in its fiscal second quarter as blockchain gaming development costs surged and revenue from its GameFi division tumbled.
The Tokyo-based company reported an operating loss of ¥854 million ($5.7 million) for the April-September period, compared with a profit of ¥546 million a year earlier. Revenue inched up 0.9% to ¥7.01 billion.
The GameFi unit, which develops blockchain-based games, saw sales plummet 46% to ¥963 million as existing titles underperformed. Development costs for its upcoming blockchain game “Ergo Sum” pushed the segment to a ¥638 million loss, reversing last year’s ¥570 million profit.
While IT outsourcing revenue jumped 55% to ¥2.03 billion, the division remained unprofitable. The EC business also slipped into the red despite an 11% sales increase.
CROOZ declined to provide full-year guidance, citing business environment uncertainties and its focus on innovative ventures. The company is executing its sixth business transformation, prioritizing IT outsourcing to address engineering talent shortages in Japan’s tech sector.
