Japanese digital media firm UUUM Co. has revised its fiscal 2024 earnings forecast downward, reflecting challenges in its core business segments. The Tokyo-based company now expects sales of 27.6 billion yen ($184 million), a significant drop from its previous projection of 29.6 to 30.3 billion yen.
UUUM attributes the lowered outlook to shifts in creator contracts and a fluctuating market environment for its context-driven marketing business. In response, the company has launched a comprehensive restructuring plan, including a new organizational structure and revamped sales strategy.
The firm’s operating profit forecast has also been cut to 330 million yen from the earlier range of 450 to 570 million yen. This reduction stems from losses associated with game title withdrawals and unexpected second-quarter costs, outweighing the benefits of reduced selling and administrative expenses.
Despite these setbacks, UUUM expects to partially offset the decline through asset optimization. The sale of affiliated company shares and investment securities is anticipated to boost both ordinary profit and net profit, keeping them within the initially forecast ranges.
As UUUM navigates these challenges, investors will be watching closely to see if the company’s restructuring efforts can stabilize its performance in the competitive digital media landscape.
