Gumi Inc. unveiled a comprehensive strategy aimed at reversing its financial fortunes and boosting its stock price for the fiscal year ending April 2025. Central to this plan is enhancing profitability in its mobile online game business and blockchain ventures.
In its latest disclosure, Gumi acknowledged that the initial strategy announced at the previous financial results has been updated following the termination of “Astarta Talics.” Previously, the company had anticipated that the game would be profitable.
The mobile game segment, which significantly contributed to the deficit, saw a pre-tax loss of 6.5 billion yen for the fiscal year ending April 2024. This includes a 2.8 billion yen impairment loss related to “Astarte Talicus,” a 2.3 billion yen operating loss, and 1 billion yen in costs from canceling new developments. These expenses will not recur in the fiscal year ending April 2025, leading to a substantial improvement in profitability.
Additionally, 80 employees opted for voluntary retirement in Q1, resulting in a special loss of 100 million yen but expected to yield 400 million yen in annual savings. These measures alone are projected to enhance profits by 6.5 billion yen.
In the blockchain sector, Gumi reported a pre-tax profit of 1.2 billion yen, although this was bolstered by a one-time gain from selling Cover shares. Excluding this, the segment would have faced a 1.2 billion yen loss. The company aims to achieve profitability through steady revenue from its blockchain game “Phantom of Kill – Alternative Imitation” and OSHI tokens.
The company is also shifting its mid-term business strategy, pausing the development of original games and focusing on profitable titles leveraging its game engine and intellectual property, such as “JoJo’s Bizarre Adventure.” This pivot includes development contracts, casual games, console games, and Steam projects.
Gumi plans to expand its blockchain business by capitalizing on the success of “Phantom of Kill – Alternative Imitation” and the increased value of OSHI tokens. This includes collaborations with major companies like TOPPAN, KDDI, and HashKey, as well as further investments in blockchain technology.
The strategy includes acquiring leading IP titles, leveraging partnerships with the Strawberry Prince Group, and making strategic investments to enhance its node business and operational capital. These initiatives are designed to create sustainable growth and improve Gumi’s market position.
