Tokyo Communications Group, Inc. reported a return to operating profit for the first quarter of 2025, as the Japanese mobile app developer’s strategic shift toward high-performing business segments yielded results.
The company posted ¥55 million ($370,000) in operating profit for the January-March period, compared with a ¥96 million loss a year earlier. Revenue increased 13.7% to ¥1.56 billion ($10.5 million).
Tokyo Communications’ media business, which accounts for nearly 60% of total sales, saw profit surge 86.8% on the strength of a new hit title in its hyper-casual gaming portfolio. The segment’s focus on casual gaming apps helped drive growth.
Its platform business, centered around telephone fortune-telling services, recorded a 329.6% jump in profit to ¥72 million ($483,000).
The company’s struggling fan club business achieved profitability following a revenue structure overhaul, while its delayed metaverse project launched a beta version of virtual space “AMIZA CITY GINZA.”
Despite the quarterly improvement, Tokyo Communications maintained its full-year forecast projecting a ¥50 million ($335,000) net loss for 2025, signaling continued challenges ahead for the digital entertainment group.
