Yuke’s Co., a Japanese video game developer once known for WWE titles, reported a 10.5% increase in first-quarter revenue to ¥921 million ($6.35 million) but saw net profit fall 26% due to foreign exchange losses.
The company posted operating profit of ¥39 million ($270,000), up 9.7% from a year earlier, though ordinary profit dropped 33.4% to ¥41 million ($283,000) after booking foreign exchange losses. Net income declined to ¥30 million ($207,000) for the three months ended April.
Yuke’s lost its lucrative WWE game development contract in 2019 after nearly two decades, forcing the Osaka-based studio to diversify its revenue streams. The company now focuses on contract development across gaming, extended reality content, and mobile platforms, alongside a smaller publishing arm.
The developer said its business development division’s aggressive sales activities helped order intake recover during the quarter. Current projects include continued work on Arc System Works’ “Double Dragon Revive,” scheduled for October release, and content creation using its proprietary real-time rendering technology “ALiS ZERO.”
Yuke’s maintained its full-year forecast calling for revenue of ¥3.8 billion ($26.2 million), representing 16.7% growth. The company projects operating profit will surge 298% to ¥350 million ($2.4 million) as project delays from previous troubles resolve.
The publishing business made one strategic investment through a production committee as part of efforts to develop original content and reduce dependence on contract work.
