Mobile Factory Inc., the Tokyo-listed mobile game developer, revised its fiscal 2025 earnings guidance on December 12, projecting higher operating profit but sharply lower net income due to a technical accounting charge.
The company now expects operating profit of ¥1.089 billion ($7.0 million), up 6.7% from its previous forecast, after cutting selling and administrative expenses. Advertising spending came in below budget, helping offset slightly weaker revenue.
However, net income is projected to fall to ¥456 million ($2.9 million), down 35% from the earlier estimate of ¥705 million. The culprit: a ¥313 million ($2.0 million) deferred tax asset write-down related to subsidiary investments. The company said it reassessed the timing of when temporary tax differences would reverse and concluded the likelihood had diminished.
Revenue guidance was trimmed 2.2% to ¥3.393 billion ($21.9 million), missing the original target by a narrow margin.
Despite the profit shortfall, Mobile Factory increased its year-end dividend to ¥23 per share from ¥20, signaling confidence in its cash position.
The company operates location-based mobile games including Station Memories and the Ekimemo series. Its shares have declined about 20% over the past year on the Tokyo Stock Exchange.
