Japanese mobile game developer KLab Inc. reported mounting losses in the first nine months of 2024 as revenue slumped following cuts to its gaming portfolio and delays in new releases.
The Tokyo-based company posted a net loss of ¥1.76 billion ($11.7 million) through September, nearly tripling from ¥591 million a year earlier. Revenue dropped 27.5% to ¥6.06 billion, primarily due to a reduced number of operating titles.
The developer’s performance was particularly hit by delays in launching EA SPORTS FC TACTICAL, a collaboration with Electronic Arts Inc. The setback forced KLab to write off deferred tax assets, further weighing on its bottom line.
While established titles like Captain Tsubasa: Dream Team and BLEACH: Brave Souls showed growth through anniversary campaigns, these gains weren’t enough to offset broader portfolio declines. The company’s new release Haikyu!! FLY HIGH, launched in April, demonstrated early promise.
KLab withheld its full-year guidance, citing uncertainty around the timing of EA SPORTS FC TACTICAL’s global release. Management indicated plans to diversify revenue streams through casual games and overseas development support while implementing stricter cost controls to restore profitability.
