Japanese mobile gaming company Mynet Inc. reported a steep decline in second-quarter profits as its core gaming business struggled without new title launches to offset weakening performance from existing offerings.
Net income tumbled 43% to ¥156 million ($1.1 million) for the six months ending June, according to company filings released Wednesday. Revenue dropped 16% to ¥3.94 billion ($26.8 million), while operating profit declined 22% to ¥242 million ($1.6 million).
The Tokyo-listed company’s gaming segment, which generates the majority of revenue, saw sales fall 18% to ¥3.65 billion ($24.8 million). While existing titles continued performing well in what Mynet calls its “secondary operations,” the absence of new game releases weighed heavily on results.
The company’s sports digital transformation division launched an updated version of its basketball fantasy game “B.LEAGUE#LIVE” for the current season, now in its fourth year of operation. Mynet also secured rights to develop an official trading card game for Japan’s professional soccer league.
Despite the disappointing quarter, management maintained its full-year forecast unchanged. The company expects revenue of ¥8.5 billion ($57.8 million) for 2025, representing a 4% decline from the previous year, with net income projected to plummet 96% to just ¥10 million ($68,000).
Mynet’s alternative business segment, focused on offshore development and consulting services, provided some relief with 22% revenue growth, though profits in this division also declined.
