Akatsuki FY3/21 Second Quarter Financial Results

Akatsuki’s financial results for the second quarter of the fiscal year ending March 2021 demonstrate strong growth, driven primarily by the robust performance of its mobile games portfolio. The company’s core thesis centers on a strategic pivot from a pure-play game developer to an intellectual property (IP) production company. By leveraging its expertise in game operations and expanding into mixed-media rights businesses, the company aims to create long-term value through both in-house and third-party IP.

Financial performance for the quarter was record-breaking, with sales reaching 10 billion yen and operating profit hitting 5.1 billion yen, representing year-over-year growth of 12.9% and 41.6%, respectively. This success was largely attributed to the sustained strength of major titles such as Dragon Ball Z Dokkan Battle, which achieved top store rankings in 13 countries, and Romancing SaGa Re;univerSe, which surpassed 25 million global downloads. The company noted that the COVID-19 pandemic had no adverse impact on its game operations or development, and it successfully managed to keep the financial impact on its non-gaming (LX) business to a minimal level.

The company’s methodology involves a rigorous focus on long-term planning, with a three-to-five-year outlook guiding its current investments in new titles and IP development. Operational updates include the upcoming launch of HoneyWorks Premium Live and the establishment of Kumarba Inc. to accelerate the development of in-house IP across various media formats. While the company continues to refine its portfolio through the selection and concentration of its business segments, it maintains a disciplined approach to expenses, balancing increased investment in game operations with strategic cost management. These results underscore a transition toward a diversified rights-based business model while maintaining a high-performing mobile gaming foundation.