Japanese mobile game developer Gumi Inc. swung to profit in its fiscal second quarter after cutting unprofitable titles and benefiting from cryptocurrency gains.
The Tokyo-based company posted a net income of 599 million yen ($4.1 million) in the six months through October, compared with a 1.43 billion yen loss a year earlier. Revenue dropped 6.1% to 5.49 billion yen ($37.5 million), according to a statement Tuesday.
Gumi’s mobile gaming division returned to profitability despite a 23.7% revenue decline, as the company terminated underperforming titles and reduced outsourcing and advertising costs. The unit recorded an operating profit of 36 million yen, recovering from a 1.03 billion yen loss.
The blockchain business emerged as a bright spot, with revenue surging 353% to 1.24 billion yen. The division benefited from its “OSHI3” entertainment platform and cryptocurrency operations. Gumi reported crypto-asset valuation gains of 979 million yen, contrasting with a 55 million yen loss last year.
The company withheld full-year guidance, citing rapid changes in its business environment.
