Akatsuki FY3/2024 Consolidated Results: Supplementary Information

Key insights

6 takeaways

01
Operating profit dropped 53% to 2.68 billion yen for the fiscal year ending March 2024, driven by heavy investment in new game development and marketing.See it on page 2
02
Total annual sales remained nearly flat at 23.97 billion yen, a 1.5% year-over-year decline as revenue from established titles cooled.See it on page 1
03
The September 2023 launch of 'Atelier Resleriana: Forgotten Alchemy and the Polar Night Liberator' helped offset revenue declines from older titles.See it on page 2
04
The Comics and Other business segments saw significant growth, with revenues increasing by 191% and 213% respectively, albeit from a small base.See it on page 2
05
Future growth projections for the fiscal year ending March 2025 rely on the full-year contribution of 'Atelier Resleriana' and the potential release of 'TRIBE NINE'.See it on page 3
06
Akatsuki maintains a shareholder return policy based on a 3% dividend on equity to ensure stable payouts during this period of high development expenditure.See it on page 3

Summary

Akatsuki Inc.’s consolidated financial results for the fiscal year ending March 2024 reflect a period of portfolio transition and investment in future growth. Total annual sales remained largely flat at 23.97 billion yen, a 1.5% decrease year-over-year. While the company experienced a reflective decline in revenue from established titles—which had previously benefited from movie-related promotional surges—this was offset by the September 2023 launch of the co-developed title Atelier Resleriana: Forgotten Alchemy and the Polar Night Liberator.

Profitability faced significant downward pressure during the fiscal year, with operating profit falling 53% to 2.68 billion yen. This contraction was primarily driven by elevated development expenses for upcoming titles, specifically TRIBE NINE and an unannounced project referred to as New Title Y, alongside increased advertising expenditures associated with new product launches. Despite these challenges, the company’s Comics and Other business segments demonstrated strong growth, albeit from a smaller base, with revenues increasing by 191% and 213% respectively.

Looking toward the fiscal year ending March 2025, the company anticipates a return to top-line growth. Projections are supported by the full-year contribution of Atelier Resleriana and the potential market impact of TRIBE NINE, contingent upon its release schedule. Strategic focus remains on balancing development costs for new intellectual property with operational efficiencies in the comics division, including a planned expansion into overseas digital distribution. The company maintains a shareholder return policy based on a 3% dividend on equity, reflecting a commitment to stable payouts despite the current cycle of heavy investment in game development.