Japanese mobile game developer Aeria Inc. cut its full-year profit forecast to a loss and announced a share buyback plan, as new content releases failed to meet sales targets.
The Tokyo-based company now expects a net loss of ¥360 million ($2.4 million) for the year ending December, compared with its previous projection for a ¥500 million profit. Revenue is forecast to drop 9.6% to ¥20.5 billion.
Aeria’s gaming division posted an operating loss of ¥586 million in the nine months through September, widening from an ¥81 million loss a year earlier. The company cited delayed development schedules and underwhelming performance of new game releases.
To shore up its stock price, Aeria plans to buy back up to 500,000 shares, or 2.4% of outstanding stock, for as much as ¥150 million. The company will maintain its year-end dividend at ¥5 per share despite the deteriorating outlook.
The asset management unit remained profitable with a ¥355 million operating profit, up 13.9% year-on-year, providing some stability as the core gaming business struggles.
