KLab Inc. reported improved first-quarter results as its mobile games performed steadily, with sales rising 3.4% to ¥1.64 billion ($10.7 million) while significantly narrowing losses compared to the same period last year.
The Tokyo-based developer of mobile online games saw its operating loss shrink to ¥288 million from ¥658 million a year earlier as cost-cutting measures reduced labor and outsourcing expenses. While still in the red, KLab’s final loss decreased to ¥479 million, less than half the ¥1.1 billion deficit recorded in Q1 2024.
The company’s flagship title “BLEACH Brave Souls” exceeded prior-year revenue after launching “10th Anniversary Year” campaigns in January. “Captain Tsubasa: Dream Team” maintained sales at previous-year levels despite weaker performance in March due to product plan changes. Support from “Haikyu!! FLY HIGH” also contributed to revenue growth.
KLab has declined to provide full-year forecasts for 2025, citing difficulties in making reliable projections. This continues the company’s cautious approach after recording a ¥2.78 billion net loss for fiscal year 2024, its second consecutive annual loss.
The results suggest KLab’s cost-reduction strategy is gaining traction, though the mobile game developer still faces challenges in returning to profitability amid intense market competition.
