Gumi's cryptocurrency profits soared despite a drop in game sales.

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Mobile game developer gumi (Tokyo) reported a quarterly profit turnaround thanks to its cryptocurrency portfolio, despite a sharp decline in game revenue due to restructuring and asset sales.

In Q1, revenue fell by 52.5% to 9.2 million USD, while operating profit increased by 11% to 491,000 USD. Profit usually reaches 8.3 million USD (+371%), and net profit reached 8.4 million USD, compared to a loss of 1.13 million USD in the same period last year. Gumi purchased 6.7 million USD worth of Bitcoin and announced plans to buy 17 million USD worth of XRP, generating 7.4 million USD in non-operating income, offsetting weaknesses in other areas.

Meanwhile, the mobile game segment fell 66.5% in revenue, with a loss of 630,000 USD after the company discontinued underperforming titles and sold its subsidiary Alim. In contrast, the blockchain segment is growing with the game "Phantom of Kill—Alternative Imitation" and revenue from cryptocurrency. Gumi stated that blockchain will be the main profit driver in the near future.

BTC-0.18%
XRP0.3%
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