Tokyo Communications Group cut its full-year revenue forecast by 28% to 5.75 billion yen ($38.3 million), warning it now expects significant losses across operations as its gaming strategy stumbles and newer ventures falter.
The Japanese telecommunications firm projected an operating loss of 280 million yen, reversing its earlier forecast for a 40 million yen profit. The company’s push into hybrid casual gaming apps failed to produce any hits, leading to a 1.6 billion yen revenue shortfall in its media segment.
While its telephone fortune-telling services showed growth, Tokyo Communications’ expansion into health tech and entertainment technology missed target customer acquisition goals. The company’s metaverse ambitions also hit roadblocks, with delays in launching its “AMIZA CITY GINZA” platform.
In response, management announced plans to exit several underperforming ventures, including event management, e-commerce services, and recruitment. The firm said it will shift focus to Web 3.0 initiatives and cryptocurrency development.
The restructuring comes as Tokyo Communications struggles to monetize new business lines effectively, with its net loss now expected to widen to 300 million yen from a previously forecast 80 million yen loss.
