Mobile Factory Inc. reported a 13.8% increase in first-quarter net profit despite a slight revenue decline as the Tokyo-based mobile game developer shifted resources toward user acquisition.
Net income rose to ¥128 million ($853,000) in the January-March quarter while revenue edged down 0.7% to ¥695 million, the company said Thursday. Operating profit increased 3.6% to ¥178 million.
The Japanese developer’s core mobile gaming segment reported a 0.6% revenue increase to ¥629 million, though segment profit fell 15.4% as the company ramped up advertising for its location-based title “Station Memories!” The game, which integrates real-world locations into gameplay, remains the company’s flagship product.
Mobile Factory cited marketing investments and offline events like “Memories Fan Meeting 2025” as part of efforts to strengthen user engagement. The company plans further partnerships with local governments and railway operators to enhance its service offerings.
Revenue from the content business, which includes ringtone services, declined 11.5% to ¥65 million as subscription numbers gradually decreased.
The company maintained its full-year forecast, projecting a 4.6% revenue increase to ¥3.47 billion and a 0.9% rise in net profit to ¥705 million for 2025.
