Pole To Win Holdings (3657) revised its full-year earnings forecast for the fiscal year ending January 2025, citing weaker domestic market conditions. The company now expects sales of ¥51.07 billion (US$346.3 million), a 2% decrease from previous forecasts, with operating profit lowered by 18.5% to ¥1.8 billion (US$12.2 million). Ordinary profit is also expected to decline by 16% to ¥1.85 billion (US$12.5 million). However, net profit has been revised upward by 30.9% to ¥322 million (US$2.2 million), thanks to reduced tax expenses.
The decline in projections stems from the end of large-scale domestic e-commerce projects and delays in new game developments, affecting the Domestic Solutions segment. Meanwhile, Overseas Solutions posted strong growth, driven by the recovering global game industry and favorable exchange rates, with sales rising 23.1% to ¥9.03 billion (US$61.2 million).
For the second quarter, Pole To Win saw sales rise 11% year-on-year to ¥24.29 billion (US$164.7 million), but operating profit dropped 36.2% to ¥359 million (US$2.43 million) due to restructuring costs in the Media & Content segment. Despite improvements in profitability through business reorganization, the company recorded additional charges related to joint game development projects and provisions for receivables, which impacted overall performance.
