Kayac Inc. reported record second-quarter revenue and sharply higher profits as its hypercasual mobile games continued gaining traction, prompting the Japanese developer to raise its full-year outlook.
Revenue climbed 14.6% to ¥8.82 billion ($60.9 million) in the six months through June, while operating profit surged 472% to ¥291 million ($2.0 million). The Kamakura-based company credited five new game releases including “Ragdoll Shooting” and “Shuriken Cut” for driving downloads 19.2% higher to a record 178.5 million.
Gaming entertainment, which generates more than half of total sales, posted ¥5.02 billion ($34.6 million) in revenue, up 13.9%. The unit benefits from advertising revenue as players engage with free-to-play titles that monetize through ads rather than upfront purchases.
However, other business segments showed mixed results. The company’s esports division declined 7.1% to ¥1.15 billion ($7.9 million) after reducing overseas marketing investments, while creative services fell 4.8%.
Management raised full-year revenue guidance to ¥19.0 billion ($131 million) from ¥18.5 billion, with operating profit now expected at ¥700 million ($4.8 million) versus ¥555 million previously. The revision reflects confidence that existing games will maintain momentum while new releases gain market share in the competitive hypercasual segment.
