KLab Inc. reported a steeper annual loss after the Japanese mobile game developer failed to launch its highly anticipated soccer game globally, highlighting growing challenges in the competitive mobile gaming market.
The Tokyo-based company’s net loss widened to ¥2.78 billion ($18.6 million) in 2024 from ¥591 million a year earlier. Revenue fell 22.5% to ¥8.31 billion as the company struggled with a declining number of operating titles and delays in releasing EA SPORTS FC TACTICAL, developed in partnership with Electronic Arts Inc.
The soccer game, which launched in select regions in May 2024, faced user retention issues during its test phase, prompting KLab to focus on quality improvements instead of proceeding with a worldwide release. The company declined to provide guidance for 2025, citing uncertainty surrounding the project.
Despite the setbacks, KLab saw some bright spots. Its “Captain Tsubasa: Dream Team” title outperformed previous year’s results after measures to reduce user attrition. “BLEACH Brave Souls” maintained stable revenue, helped by promotional tie-ins with the television anime series.
The company’s game development support business for overseas markets showed promise, boosted by the release of “Haikyu!! FLY HIGH” in Japan and South Korea, along with increased IP collaboration projects. Its casual gaming subsidiary, Global Gear, maintained consistent revenue through steady new releases.
Operating loss expanded to ¥1.34 billion from ¥1.22 billion in the previous year, while ordinary loss grew to ¥1.28 billion from ¥852 million.
