Akatsuki Q3 Fiscal Year Ending March 31, 2021 Financial Results

Key insights

7 takeaways

01
Akatsuki reported net sales of 23,678 million yen for the first nine months of FY2021, a 0.8% year-on-year increase.See it on page 1
02
Operating profit grew by 14.2% to 9,309 million yen, while profit attributable to owners of the parent rose 12.1% to 5,820 million yen.See it on page 8
03
The Games business remained the primary revenue driver, anchored by the stable performance of Dragon Ball Z Dokkan Battle, Romancing Saga RE: UniverSe, and the launch of HoneyWorks Premium Live.See it on page 4
04
The company maintains a strong balance sheet with an equity ratio of 78.5% and total assets of 44,928 million yen as of December 31, 2020.See it on page 1
05
Liabilities decreased to 9,641 million yen following the redemption of 2,000 million yen in corporate bonds.See it on page 6
06
Management declined to provide full-year earnings forecasts for the fiscal year ending March 31, 2021, citing market uncertainty and ongoing investments in new IP and global expansion.See it on page 5
07
The Live Experience business faced operational disruptions at the ASOBUILD facility due to the pandemic, though financial impacts were mitigated through cost-management and leasing efforts.See it on page 4

Summary

Akatsuki Inc.’s financial results for the first nine months of the fiscal year ending March 31, 2021, demonstrate resilient performance despite the global economic challenges posed by the COVID-19 pandemic. The company reported net sales of 23,678 million yen, a 0.8% increase compared to the same period in the previous year. Operating profit rose significantly by 14.2% to 9,309 million yen, while profit attributable to owners of the parent reached 5,820 million yen, representing a 12.1% year-on-year growth.

The company’s primary revenue driver, the Games business, remained insulated from pandemic-related disruptions. Success was anchored by the stable performance of the major title Dragon Ball Z Dokkan Battle, alongside contributions from Romancing Saga RE: UniverSe and the launch of HoneyWorks Premium Live. While the Live Experience business faced operational restrictions and visitor limitations at its ASOBUILD facility, strategic cost-management and leasing efforts mitigated the overall financial impact.

As of December 31, 2020, the company maintained a strong financial position with total assets of 44,928 million yen and an equity ratio of 78.5%. Liabilities decreased to 9,641 million yen, largely due to the redemption of 2,000 million yen in corporate bonds. Given the inherent uncertainties in the short-term gaming market and the company's ongoing investments in new intellectual property and global expansion, management has opted not to provide full-year earnings forecasts for the fiscal year ending March 31, 2021. The results reflect a strategic focus on high-quality title development and operational efficiency within the mobile gaming sector.