Moi Corp., operator of Japanese live streaming platform TwitCasting, nearly tripled its operating profit forecast for the fiscal year ending January 2026 after slashing costs, even as its core user base continues to shrink.
The Tokyo-listed company on December 10 raised its operating profit projection to ¥328 million ($2.2 million), up 185% from its prior estimate of ¥115 million. Revenue expectations remain essentially unchanged at ¥6.61 billion ($44 million), suggesting the improvement stems from expense reductions rather than business expansion.
For the nine months through October, operating profit surged 44.5% year-over-year to ¥265 million ($1.8 million), while sales edged up just 0.5% to ¥4.95 billion ($33 million). Net income fell 13% to ¥134 million ($890,000) after the company booked a ¥24 million special loss to settle a copyright dispute with the Japanese Society for Rights of Authors, Composers and Publishers.
Moi attributed the profit gains to reduced payment processing fees as users shifted away from app-based purchases, along with deferred marketing expenditures. Membership subscriptions grew, offsetting weakness in virtual gift revenue as monthly paying users dropped 9.4%.
The results highlight the challenges facing domestic streaming platforms in Japan, where YouTube and Twitch have captured the bulk of viewership growth. TwitCasting, which claims over 30 million registered users, is also now engaged in a separate copyright dispute with rights management firm NexTone that could result in additional charges.
The company left its net income forecast undetermined, citing ongoing evaluation of deferred tax assets.
