Akatsuki Summary of Consolidated Financial Statements for the Third Quarter of Fiscal Year Ending March 31, 2019

Akatsuki Inc.’s financial results for the first nine months of the fiscal year ending March 31, 2019, reflect continued growth driven by its core mobile gaming operations and strategic expansion into the live experience (LX) sector. The company reported net sales of 18,596 million yen, representing a 16.4% increase compared to the same period in the previous fiscal year. Operating profit rose by 5.0% to 8,302 million yen, while profit attributable to owners of the parent reached 5,775 million yen, a 2.0% year-on-year increase.

The mobile gaming segment remains the primary driver of the company’s financial performance. Key titles, including the long-running "Dragon Ball Z Dokkan Battle" and the newly released "Romancing Saga RE: UniverSe," contributed significantly to revenue. The latter achieved over 10 million downloads within its first month of release in December 2018. Simultaneously, the company expanded its footprint in the live experience business by integrating two previously acquired entities into a new consolidated subsidiary, Akatsuki Live Entertainment, to focus on original real-world content creation.

As of December 31, 2018, the company maintained a solid financial position with total assets of 31,367 million yen and an equity ratio of 69.1%. The increase in total assets was largely attributed to growth in property, plant, and equipment, as well as investments related to the consolidation of its LX business. Due to the inherent volatility of the mobile gaming market and the strategic challenges associated with entering new business fields, the company has elected not to provide full-year earnings forecasts for the fiscal year ending March 31, 2019. The financial statements were prepared in accordance with Japanese GAAP, incorporating updated accounting standards for tax effect accounting and stock acquisition rights.