NJ Holdings Inc. reported a loss in the fiscal first half as declining revenue from its gaming segment overshadowed growth in its mobile retail business. The Tokyo-based company lost ¥27 million ($181,000) in the six months through December, compared with a profit of ¥365 million a year earlier.
Revenue fell 16% to ¥4.36 billion in the period, primarily due to reduced development activity and scaled-back operational support in the gaming division. The segment’s sales dropped 23% as several major projects moved past their peak development phases.
The company’s mobile retail unit provided a bright spot, with sales rising 14% as new store openings helped offset declining customer traffic. The division’s operating profit jumped 30% as both new and existing locations showed improved device sales.
NJ Holdings maintained its full-year forecast, projecting net income will plunge 85% to ¥40 million on revenue of ¥8.87 billion. The company cited cost controls and efficiency measures in game development to help minimize the impact of lower sales volumes.
