The post Gumi’s Cryto Profit Surges Despite Game Sales Slump appeared on BitcoinEthereumNews.com. Tokyo-based mobile game developer gumi posted a sharp turnaround in quarterly profits as cryptocurrency holdings significantly boosted earnings. Despite a steep drop in core gaming revenue caused by restructuring and asset sales, the company leveraged Bitcoin gains and a planned XRP purchase to deliver strong overall financial results. Crypto Windfall Offsets Weak Game Revenue Sponsored Sponsored Gumi announced that first-quarter revenue declined 52.5% year-on-year to $9.2 million (1.35 billion yen). Nevertheless, operating profit rose 11.0% to $491,000, while ordinary profit surged 371.1% to $8.3 million. Net income climbed to $8.4 million, marking a decisive turnaround from a $1.13 million net loss recorded a year earlier. The company credited these results mainly to its cryptocurrency portfolio. Over the past six months, Gumi purchased $6.7 million (1 billion yen) in Bitcoin and recently confirmed plans to acquire $17 million worth of XRP. After applying mark-to-market accounting for these holdings, the company recorded $7.4 million in non-operating income, which helped offset weaker performance in other areas. Moreover, management indicated that ongoing blockchain initiatives will remain an essential earnings driver in future quarters. Game Division Faces Sharp Downturn Mobile gaming, the firm’s mainstay, has weakened over time. Sales fell 66.5% to $4.7 million. Gumi exited unprofitable titles, transferred some operations to outside partners, and sold subsidiary Alim. This segment recorded a $630,000 operating loss, reversing the prior year’s profit. The company intends to emphasize third-party intellectual property titles rather than create original games. Management withheld a full-year forecast, citing unpredictable market conditions. On the contrary, Gumi’s blockchain business delivered growth. Revenue increased with the launch of “Phantom of Kill—Alternative Imitation,” the first title in its OSHI3 fan-engagement project. Additional income came from crypto received through blockchain activities. The company plans to expand its blockchain initiatives further as its traditional gaming segment faces headwinds. Source: https://beincrypto.com/gumis-cryto-profit-surges-game-sales-slump/The post Gumi’s Cryto Profit Surges Despite Game Sales Slump appeared on BitcoinEthereumNews.com. Tokyo-based mobile game developer gumi posted a sharp turnaround in quarterly profits as cryptocurrency holdings significantly boosted earnings. Despite a steep drop in core gaming revenue caused by restructuring and asset sales, the company leveraged Bitcoin gains and a planned XRP purchase to deliver strong overall financial results. Crypto Windfall Offsets Weak Game Revenue Sponsored Sponsored Gumi announced that first-quarter revenue declined 52.5% year-on-year to $9.2 million (1.35 billion yen). Nevertheless, operating profit rose 11.0% to $491,000, while ordinary profit surged 371.1% to $8.3 million. Net income climbed to $8.4 million, marking a decisive turnaround from a $1.13 million net loss recorded a year earlier. The company credited these results mainly to its cryptocurrency portfolio. Over the past six months, Gumi purchased $6.7 million (1 billion yen) in Bitcoin and recently confirmed plans to acquire $17 million worth of XRP. After applying mark-to-market accounting for these holdings, the company recorded $7.4 million in non-operating income, which helped offset weaker performance in other areas. Moreover, management indicated that ongoing blockchain initiatives will remain an essential earnings driver in future quarters. Game Division Faces Sharp Downturn Mobile gaming, the firm’s mainstay, has weakened over time. Sales fell 66.5% to $4.7 million. Gumi exited unprofitable titles, transferred some operations to outside partners, and sold subsidiary Alim. This segment recorded a $630,000 operating loss, reversing the prior year’s profit. The company intends to emphasize third-party intellectual property titles rather than create original games. Management withheld a full-year forecast, citing unpredictable market conditions. On the contrary, Gumi’s blockchain business delivered growth. Revenue increased with the launch of “Phantom of Kill—Alternative Imitation,” the first title in its OSHI3 fan-engagement project. Additional income came from crypto received through blockchain activities. The company plans to expand its blockchain initiatives further as its traditional gaming segment faces headwinds. Source: https://beincrypto.com/gumis-cryto-profit-surges-game-sales-slump/