Akatsuki Summary of Consolidated Financial Statements for the First Quarter of Fiscal Year Ending March 31, 2023

Akatsuki’s financial results for the first quarter of the fiscal year ending March 31, 2023, reflect a period of strategic transition and investment. The company has reorganized its operations into three distinct segments—Games, Comics, and Others—to better manage its business portfolio. While net sales saw a modest year-on-year increase of 1.8% to 5,213 million yen, profitability declined significantly. Operating profit fell by 50.2% to 448 million yen, and profit attributable to owners of the parent dropped by 66.4% to 190 million yen, largely due to increased costs associated with business expansion and new initiatives.

The Games segment remains the company’s primary revenue driver, supported by the stable performance of flagship titles such as Dragon Ball Z Dokkan Battle and Romancing SaGa Re;univerSe. Conversely, the newly established Comics segment is currently in an investment phase, highlighted by the June 2022 launch of the full-color vertical comic app, HykeComic. This segment recorded a loss of 189 million yen for the quarter as the company prioritizes content development and market penetration.

The company’s financial position as of June 30, 2022, shows total assets of 51,641 million yen, supported by an equity ratio of 73.4%. Liabilities increased to 13,674 million yen, driven by new bond issuances and long-term borrowings intended to fund growth. Due to the inherent volatility of the gaming market and the aggressive, early-stage nature of the Comics business, management has opted not to provide full-year earnings forecasts, citing the difficulty of generating reliable projections under current market conditions. The company continues to monitor global economic risks, including supply chain constraints and raw material price fluctuations, while focusing on long-term operational stability.