Tokyo Communications Group raised its full-year profit forecast by more than five-fold after booking gains from selling investment securities, highlighting the company’s dependence on non-operational income to improve financial results.
The mobile game developer expects to post ¥630 million ($4.2 million) in ordinary profit for the year ending December 2025, up from a previous estimate of ¥100 million ($667,000). The revision stems primarily from ¥509 million ($3.4 million) in gains from disposing of securities held by a subsidiary during the third quarter.
The Tokyo-based company, which develops casual and hyper-casual smartphone games, also operates fortune-telling services and health tech platforms. Revenue is expected to remain unchanged at ¥6.2 billion ($41.3 million) for the fiscal year.
Tokyo Communications reported a return to profitability in the first half, posting ¥105 million ($700,000) in ordinary profit compared with an ¥88 million loss a year earlier. The turnaround was driven by its media division, which created several hit mobile games that topped app store rankings.
The platform business, anchored by the Charis fortune-telling service, also contributed to growth with consultation sessions reaching 145,000 during the second quarter. The company has introduced artificial intelligence features to enhance service offerings.
However, the reliance on asset sales to meet profit targets raises questions about the sustainability of earnings growth from core operations. Operating profit for the full year is projected at ¥180 million ($1.2 million), representing a modest increase from previous estimates.
