Digital Hearts Holdings Co. lowered its annual profit forecast by 20% even as its gaming services division posted stronger results, highlighting challenges in its technology consulting business.
The Tokyo-based software testing company now expects net income of 1.6 billion yen ($10.7 million) for the year ending March 2025, down from its previous estimate of 2.1 billion yen. The revision comes despite reporting a return to profit in the fiscal first half, with net income reaching 455 million yen compared to a loss a year earlier.
The company’s core gaming services unit saw profits climb 11% to 832 million yen, helped by debugging contracts for new game titles and the rollout of ELLA, an AI-powered game translation engine developed with Rosetta. However, its AGEST technology consulting division barely broke even with a 6 million yen profit after losing money in the first quarter due to project delays.
Digital Hearts has been pushing to expand beyond traditional testing services by investing in cybersecurity through the Japan Cybersecurity Fund and developing AI-enhanced solutions. But the company’s reduced outlook suggests its diversification efforts may take longer than expected to boost earnings.
