WonderPlanet Inc. reported a second-quarter net loss as the Japanese mobile game developer ramps up investment for international expansion while weathering declining revenue from older titles.
The Nagoya-based company posted a net loss of 91 million yen ($620,000) for the six months ended February, compared with a profit of 105 million yen a year earlier. Sales fell 6.1% to 1.16 billion yen ($7.9 million).
The developer cited additional development costs for its upcoming global release of Pandland, scheduled for late April, as a primary factor behind the quarterly setback. WonderPlanet also recorded 11 million yen in expenses related to a corporate bond issuance in February.
Revenue from game development operations rose to approximately 57% of total sales, showing progress on two new licensed intellectual property titles. However, this growth was overshadowed by declining performance of existing games and the impact of shutting down Jump Chi Heroes in both Japanese and Traditional Chinese versions last March.
The company’s flagship title Crash Fever also underperformed compared to the same period last year, further dragging down results.
WonderPlanet, listed on the Tokyo Stock Exchange’s Growth market, has been diversifying its portfolio through international expansion and investment in new titles to offset the natural decline cycle of mobile games.
