Mobcast Holdings reported a return to profitability in the second quarter of the fiscal year ending December 2024, despite a decrease in revenue. The company’s sales fell by 5.6% year-on-year to ¥1.685 billion (US$11.6 million) following the transfer of its licensed IP game business. However, all profit metrics showed significant improvement, with net profit reaching ¥71 million (US$489,000), reversing a loss of ¥109 million in the same period last year.
The turnaround in profitability was largely driven by a special profit of ¥40 million (US$275,000) from the divestiture of the licensed IP game business. This strategic move is part of Mobcast’s broader effort to realign its focus on creating original IP, as the company grapples with rising development costs and fierce competition in the licensed IP market.
A key development in this strategy was the absorption of Cloud Horse Farm by Mobcast’s subsidiary, X-VERSE, which subsequently rebranded as NINJIN. This reorganization aims to strengthen the company’s digital IP business by developing new content beyond traditional mobile games.
Despite these positive changes, Mobcast has not disclosed its full-year earnings forecast, citing the unpredictability of future investment returns and the challenges of estimating revenue from its ongoing IP development efforts.
