Tokyo Communications Group swung to a profit in the nine months through September after selling investment securities, though the company cautioned that its mobile gaming business faces persistent challenges despite two titles reaching top chart positions.
The operator of smartphone applications posted net income of ¥154 million ($995,000) compared with a ¥266 million loss a year earlier. Revenue climbed 11% to ¥4.71 billion, the Tokyo-based company said in a statement Wednesday.
The investment unit’s securities disposal provided the primary catalyst for profitability, overshadowing modest gains in the company’s core media and platform operations. Two games—”Who’s in the Next Seat?” and “Nippon Conquest”—topped free rankings on Apple’s App Store and Google Play during the period, though the company acknowledged that newer releases contributed only marginally to financial performance.
The platform division, which operates telephone fortune-telling services, reported segment profit of ¥251 million, up 47% as management implemented artificial intelligence tools to improve operational efficiency. The media segment’s profit more than doubled to ¥306 million even as the company managed 246 smartphone applications.
Tokyo Communications maintained its full-year forecast of ¥180 million in operating profit and ¥6.3 billion in revenue, indicating management expects sequential quarterly performance to moderate. The entertainment technology business achieved 12 consecutive months of profitability through September after restructuring efforts.
