Mobile Factory Inc. lowered its full-year sales forecast by 8.2% to ¥3.28 billion ($21.9 million) as raid events for its main location-based game failed to attract players as expected. The Tokyo-based gaming company also trimmed its operating profit outlook to ¥1.01 billion.
The company’s primary revenue driver, “Ekimemo!” or Station Memories, saw mixed results in the third quarter. While travel-related items performed well as users resumed their mobility patterns, promotional events and IP collaborations fell short of expectations.
For the January-September period, Mobile Factory reported a 3.8% drop in sales to ¥2.35 billion. Operating profit edged up 2.9% to ¥704 million, helped by lower goodwill amortization costs despite increased personnel expenses following a reorganization of its blockchain division.
The mobile gaming segment, which accounts for about 90% of total revenue, saw profits decline 23% to ¥594 million. The company has planned various initiatives to boost user engagement, including collaborations with local governments and railway operators, and will host a fan meeting in January 2025 to mark the game’s 10th anniversary.
The ringtone service business continued to see a gradual decline in paying subscribers, with segment sales dropping 11.3% year-on-year.
