Mobile Factory, Inc.

Business Details

Develops and operates location-based smartphone games including "Eki Memo! (Station Memories!)", "Awa Memo! (Eki Memo! Our Rails)", and "Eki Dasshu". Users can use the services free of charge in principle, with revenue generated through paid item purchases (licenses, gacha, radar, etc.). System development is conducted in-house, with some illustration and scenario work outsourced externally. Google Inc. and Apple Inc. are the primary payment processing agents, together accounting for approximately 82% of net sales. This is the flagship business, accounting for approximately 92% of consolidated net sales.

Recent Overview

Revival of battle events and contribution from accessory gacha drove Q1 net sales up 9.6% year on year

In Q1 FY2026 (ending December 2026), Mobile Games Business net sales were ¥690 million (up 9.6% year on year), and segment profit was ¥166 million (up 26.2% year on year). User activity increased due to the holding of battle events that were not held in the same period of the prior year, the continued implementation of the accessory gacha introduced in April 2025, and an overall increase in the number of initiatives. In terms of functionality, a "History function" was implemented to enhance user engagement, aiming to cultivate long-term usage motivation and revitalize the community.

Key Products

Growth Drivers

• Strong performance of collaboration events with other companies' IP and in-game events such as raid events and battle events
• Expansion of sales of travel-related merchandise through event rollouts that encourage travel
• Diversification of revenue opportunities through the introduction of new merchandise such as "Accessory Gacha" and "Premium Deko"
• Strengthening of the user base and increase in new installs through proactive investment in advertising expenses
• Enhancement of user experience value through strengthened life-log and engagement features such as the "History function"
• Enhancement of service value through collaboration with local governments and railway operators
• Tailwind from the enforcement of the new Smartphone Act (Smartphone Software Competition Promotion Act), which is expected to ease app store monopolies and reduce fee burdens

Risks

• Rising user acquisition costs due to intensifying competition in the smartphone game market
• Revenue dependence on platform operators such as Google and Apple (together accounting for approximately 82% of net sales) and risk of fee policy changes
• Business concentration risk due to focus on the specific genre of location-based games
• Revenue volatility risk due to declining user engagement or lower conversion rates
• Risk that rising costs from increased advertising expenses will squeeze profit margins
• Risk of service disruption due to cyberattacks or information security incidents