Japanese mobile game developer Mobile Factory reported a sharp turnaround in profitability for fiscal 2023, driven by strong performance of its flagship railway-themed game “Station Memories!” despite a slight revenue decline.
The Tokyo-based company posted a net profit of 699 million yen ($4.7 million) for the year ended December, recovering from a loss of 940,000 yen in 2022. Operating profit rose 12% to 1.06 billion yen ($7.1 million), while revenue dipped 1.6% to 3.32 billion yen ($22.3 million).
The company’s gaming division, which accounts for over 90% of sales, saw mixed results. While special 10th anniversary campaigns and “wrapping gacha” features boosted user engagement, some raid events underperformed expectations. The segment’s profit dropped 18.3% as Mobile Factory increased staffing for its core game after exiting blockchain operations.
For 2024, Mobile Factory projects a 4.6% revenue growth to 3.47 billion yen but expects operating profit to decline 3.6% due to increased advertising investments. Management indicated plans to pursue M&A opportunities while expanding collaboration with local governments and railway operators.
The content services unit continued its gradual decline, with revenue falling 11.3% as subscription numbers for ringtone services decreased.
