UUUM Co. returned to profitability in its latest fiscal period as aggressive cost-cutting measures helped offset declining revenue from its content creator business.
The Tokyo-based company reported operating profit of ¥324 million ($2.2 million) for the 16 months ended September 2024, compared with a loss of ¥266 million a year earlier. Revenue fell 9% to ¥27.6 billion, according to a statement Thursday.
Chief Executive Officer Kiyo Mizuki has been restructuring the business by reducing headcount, cutting advertising spending and closing unprofitable units. The company slashed monthly operating expenses to ¥471 million, the lowest level in its reported periods.
UUUM, which manages YouTube content creators and influencer marketing campaigns, saw its core advertising revenue decline 14% year-over-year in the June-September quarter as some creators changed contract terms. Monthly video views also dropped to 2 billion from 2.3 billion a year earlier.
The company forecasts operating profit will rise 37% to ¥540 million for fiscal 2025 on revenue of ¥21.9 billion. UUUM lowered its medium-term targets, citing changes in creator contracts and market conditions.
Parent company FreakOut Holdings Ltd. announced plans to acquire the remaining stake in UUUM through a tender offer, seeking to strengthen their influencer marketing business.
