Japanese online gaming firm CyberStep saw its losses deepen in the first quarter as revenue fell short of expectations. The company reported a 24.7% drop in sales to 624 million yen ($4.1 million) for the June-August period, with net losses expanding to 411 million yen from 355 million yen a year earlier.
CyberStep’s main online gaming segment struggled, with sales declining 27.5% year-on-year. The company’s efforts to boost usage and retention rates for its Toreba game failed to deliver the anticipated revenue boost. A 34 million yen foreign exchange loss further dented the bottom line.
While the entertainment business segment saw a 45.7% increase in sales, it reported a significantly wider loss of 241 million yen compared to the previous year’s 12 million yen loss. The company attributes this partly to increased expenses related to stock-based compensation at its subsidiary BloomZ.
CyberStep remains cautious about its full-year outlook, leaving its forecast “undecided” due to difficulties in making accurate projections. The company plans to focus on expanding new content and improving profitability in the coming months, while continuing its cost-reduction efforts across operations.
