Tose Software, a leading video game software developer, has significantly lowered its earnings forecast for the fiscal year ending August 2024. The company now projects sales of 4.83 billion yen, down from the previously anticipated 5.52 billion yen. Additionally, Tose expects an operating loss of 450 million yen, a stark contrast to the earlier forecast of a 20 million yen profit. The ordinary loss is projected at 445 million yen, and the net loss is expected to reach 296 million yen, resulting in an EPS of -39.1 yen, compared to the prior forecast of 7.12 yen.
This downward revision highlights a dramatic reversal from the previous fiscal year’s performance, which recorded sales of 5.783 billion yen, an operating profit of 488 million yen, and a net profit of 499 million yen. The sharp decline is attributed to changes in client policies that emerged in the third quarter, leading to the cancellation of key game software projects and delays in others.
In the third quarter, Tose reported sales of 3.243 billion yen, a 27.6% decline from the same period last year. The company also recorded an operating loss of 599 million yen and a net loss of 367 million yen, compared to profits in the previous year. The digital entertainment business, in particular, saw a 29.2% drop in sales due to canceled projects and extended development periods.
Despite these challenges, Tose is working to strengthen project management and aims to launch currently scheduled projects to recover its performance. The company remains focused on navigating these turbulent times and stabilizing its financial outlook.
