Akatsuki Q3 Fiscal Year Ending March 31, 2023 Financial Results

Akatsuki Inc.’s financial results for the first nine months of the fiscal year ending March 31, 2023, reflect a period of strategic transition as the company pivots toward a venture group structure. The primary objective of this reporting period was to integrate responsibility and authority across its core Games business and its newly prioritized Comics business. To facilitate this, the company implemented a segment reorganization and established the Dawn Capital 1 Investment Limited Partnership to streamline operations and focus resources on long-term growth.

Financial performance for the nine-month period ending December 31, 2022, showed a decline compared to the previous year. Net sales reached 18,132 million yen, a 3.4% year-on-year decrease, while operating profit fell 11.0% to 4,405 million yen. Profit attributable to owners of the parent saw a more significant contraction of 44.4%, totaling 2,105 million yen. The Games business remained the primary revenue driver, generating 17,854 million yen in sales and 6,086 million yen in segment profit, supported by the stable operation of flagship titles such as Dragon Ball Z Dokkan Battle and Romancing SaGa Re;univerSe. Conversely, the Comics business, anchored by the June 2022 launch of the HykeComic app, reported 102 million yen in sales and a segment loss of 768 million yen, reflecting active investment in original content and user acquisition.

The company maintains a strong financial position with total assets of 53,414 million yen and an equity ratio of 73.9%. Due to the inherent volatility of the gaming sector and the strategic focus on scaling the Comics business, management has elected not to provide full-year earnings forecasts for the fiscal year. Future corporate strategy includes the absorption of the subsidiary Akatsuki Live Entertainment Inc., effective April 2023, to further rationalize management and concentrate resources on core business objectives.