Akatsuki FY3/23 1st Quarter Financial Results

Akatsuki Inc.’s financial results for the first quarter of the fiscal year ending March 2023 reflect a period of strategic investment and seasonal volatility. The company reported consolidated sales of 5.2 billion yen, representing a marginal year-over-year increase of 1.8%. However, operating profit declined by 50.2% to 0.4 billion yen. This contraction in profitability is primarily attributed to intentional spending on future growth initiatives, particularly in new game development and the expansion of the comics business, compounded by a seasonally sluggish quarter for existing mobile titles.

The Games Business remains the primary revenue driver, contributing 5.1 billion yen in sales. Performance in this segment was supported by active lifecycle management of existing titles, such as the co-developed "Dragon Ball Z Dokkan Battle," which saw successful anniversary events and expanded language support. Simultaneously, the company accelerated development efforts for new projects, including "TRIBE NINE" and an additional third-party IP title. These development costs, alongside increased research and development expenditures, were key factors in the overall decline in operating profit.

In the Comics Business, the company launched the "HykeComic" service in June 2022. While this segment recorded an operating loss of 0.2 billion yen for the quarter, the launch is viewed as a foundational step, with management focusing on scaling the library of available works and implementing promotional strategies to drive future expansion. The company’s broader investment portfolio, which spans sectors including Web3, media, and SaaS, continues to show growth, with the present market value of investments reported at 60% above the total invested amount. The company maintains a stable balance sheet with 31.5 billion yen in cash and continues to prioritize long-term growth through its diversified business segments.