Mobile Factory posted record-high operating profit for the first half of its fiscal year, driven by the performance of its flagship location-based gaming title despite declining revenue from its traditional content business.
The Tokyo-based mobile game developer reported operating profit of ¥547 million ($3.7 million) for the six months ended June, marking a 12.4% increase from the prior year period. Revenue climbed 2.6% to ¥1.66 billion ($11.2 million).
The company’s mobile gaming division, which accounts for roughly 92% of total revenue, generated ¥1.53 billion ($10.3 million) in sales, up 4% year-over-year. Segment profit rose 6.7% to ¥454 million ($3.1 million). The growth came primarily from Station Memories, a location-based game that allows players to collect anime-style characters representing Japan’s more than 9,000 train stations.
The game capitalizes on Japan’s commuter culture, where employees and students often have long train-based journeys, providing entertainment during daily travel routines. Mobile Factory introduced new revenue features including accessory gacha mechanics and photo recording capabilities that let users document visited stations.
However, the content division struggled as the market for mobile ringtones continued shrinking. Content revenue fell 11.8% to ¥129 million ($0.9 million), with segment profit dropping 12.7% to ¥96 million ($0.6 million). The declining subscriber base reflects the broader industry shift away from traditional mobile content services.
Mobile Factory maintained its full-year forecast, projecting revenue of ¥3.47 billion ($23.4 million) and operating profit of ¥1.02 billion ($6.9 million). The company continues investing in advertising to expand its user base for Station Memories while exploring partnerships with local governments and railway operators.
