CyberStep reported narrower losses for its fiscal first quarter ended August despite a sharp drop in sales, as the Tokyo-listed online game developer leaned on aggressive cost-cutting measures to stabilize its deteriorating finances.
The company posted a net loss of ¥310 million ($2.05 million) for the three months through August, compared with a ¥411 million deficit a year earlier. Revenue tumbled 23% to ¥482 million as the firm continued struggling to attract users to titles including Onigiri and CosmicBreak.
Operating losses shrank to ¥324 million from ¥553 million, reflecting what the company described as thorough scrutiny of reducible expenses and sustained development cost reductions. The moves come as CyberStep battles a prolonged downturn that saw full-year revenue drop 26% in fiscal 2024.
The online gaming division, which accounts for roughly 90% of sales, saw its segment loss widen to ¥196 million from ¥156 million despite revenue declining 25%. The entertainment segment, however, showed dramatic improvement with losses narrowing to just ¥6 million from ¥241 million.
CyberStep again declined to provide full-year earnings guidance, citing difficulty making reasonable projections. The company, which has about 264 employees, said it would release forecasts when calculations become feasible.
