Japanese entertainment company Furyu Corp. slashed its annual profit forecast by 23% as its arcade and photo booth businesses continue to face headwinds despite stronger sales in its hobby goods division.
The Tokyo-based company now expects operating profit of ¥2.3 billion ($15.3 million) for the fiscal year ending March 2025, down from its previous projection of ¥3 billion. While revenue is expected to climb 3.4% to ¥44.5 billion, net income is forecast to drop 20% to ¥1.6 billion.
Furyu’s core segment selling hobby merchandise and crane game prizes has seen robust orders, but profit margins are deteriorating in the fourth quarter. The company also cited increased inventory provisions and advance investments for the next fiscal year as factors behind the profit decline.
The company’s girls’ trend business remains under pressure, with its signature print club photo booth service seeing sluggish recovery in customer traffic. Furyu reduced its forecast for total annual plays to 30 million from 32 million previously.
The revised outlook follows weak third-quarter results, where operating profit plunged 41.8% to ¥2.05 billion despite a 3.5% increase in revenue to ¥33.67 billion. The results reflect a 39% drop in operating profit from the previous year’s forecast, highlighting persistent challenges in the company’s entertainment operations.
Furyu shares have declined 15% over the past year as investors remain concerned about the pace of recovery in its arcade and photo booth segments.
