NJ Holdings Co. reported a 91.7% drop in third-quarter operating profit as declining development projects in its core gaming division overwhelmed growth in its mobile business.
The Tokyo-based company’s operating profit fell to ¥19 million ($131,000) for the nine months ended March, while revenue declined 12.5% to ¥6.69 billion ($46.1 million), according to a statement Friday. The firm posted a net loss of ¥15 million, unchanged from the year-earlier period.
NJ Holdings’ gaming segment, which accounts for over 70% of total revenue, saw sales plummet 20.9% to ¥4.77 billion as development projects passed their peak and operational support work contracted. Profit in the division sank 58.3%.
The company’s mobile business provided a counterbalance, with revenue increasing 19.5% to ¥1.88 billion and profit surging 82.3% to ¥76 million. Management cited new store openings and improved sales at existing locations despite persistent challenges with customer traffic.
Looking ahead, NJ Holdings maintained its full-year forecast for a steep decline across all metrics, projecting revenue of ¥8.87 billion (down 8.5%) and net income of ¥40 million (down 85.4%).
The firm expects earnings per share of ¥7.56 for the fiscal year ending June 2025.
