Financial · May 1, 2025

Announcement of Consolidated Results for Fiscal Year Ended March 31, 2025

Published by Akatsuki

Summary

Akatsuki Inc. reported a significant increase in profitability for the fiscal year ended March 31, 2025, despite a slight contraction in overall revenue. Consolidated net sales reached 23,652 million yen, representing a 1.3% decrease from the previous year. This decline was primarily driven by portfolio restructuring within the Games business, which offset the positive contributions from new title releases. However, operating profit rose by 46.3% to 3,915 million yen, and ordinary profit grew by 49.4% to 4,233 million yen. Profit attributable to owners of the parent also saw a 27.8% increase, totaling 1,646 million yen, resulting in a profit per share of 114.22 yen. The improved profit margins were largely attributed to growth in the Comics and IP Solutions segments. The Comics business benefited from development and operational support for an overseas manga platform, while the IP Solutions segment saw expansion in its online lottery service, Slash Gift. These gains successfully mitigated increased research and development expenses within the Games business. Furthermore, the company realized gains from the sale of shares following the initial public offerings of several investee companies, which bolstered net income. To ensure long-term financial soundness, the company recorded several one-time charges. On a consolidated basis, an extraordinary loss of 593 million yen was recognized for the valuation of investment securities. On a non-consolidated basis, the company recorded a 5,776 million yen provision for doubtful accounts and a 2,454 million yen loss on the valuation of shares in affiliated companies. While these non-consolidated figures are substantial, they represent internal assessments of subsidiary loans and investments and had a minimal impact on the final consolidated financial results for the fiscal year.

From the report

FASF y9, 2025 May 9, 2025 Company name: Akatsuki Inc. Representative: Tetsuro Koda, President and CEO (Code number: 3932, Tokyo Stock Exchange, Prime Market) Inquiries: Kazuhiro Ishikura, Director and CFO (TEL 03-5422-7757) Announcement of Consolidated Results for Fiscal Year Ended March 31, 2025, a Comparison with Prior Year Results, Extraordinary Loss, and Non-operating Expense We announce full-year consolidated results for FY2024 (April 1, 2024 to March 31, 2025) and provide a comparison with prior year results as shown below. Additionally, we inform you that an extraordinary loss was recorded for the fiscal year ended March 31, 2025. 1. Full-year consolidated results for FY2024 and a comparison with prior year results Operating Ordinary Profit Profit per Net sales profit profit attributable to share owners of parent Current year results million yen million yen million yen million yen yen (A) (FY2024) 23,652 3,915 4,233 1,646 114.22 Prior year results 23,972 2,676 2,834 1,288 104.01 (B) (FY2023) Difference (A-B) △320 1,239 1,399 358 10.21 Percentage chg. (%) △1.3 46.3 49.4 27.8 9.8

lts 23,972 2,676 2,834 1,288 104.01 (B) (FY2023) Difference (A-B) △320 1,239 1,399 358 10.21 Percentage chg. (%) △1.3 46.3 49.4 27.8 9.8 2. Comparison with prior year results While the release of a new title contributed positively, the Games business experienced a year-on-year sales decline due to factors such as portfolio restructuring of existing titles. As a result, consolidated net sales for the fiscal year ended March 2025 decreased compared to the previous fiscal year (ended March 2024). Operating and ordinary profit increased from the prior year despite an increase in research and development expenses in the Games business to support accelerated development efforts for titles approaching release. The year-on-year profit increase was due to contributions from the Comics business, where revenue increased with contracted development and operational support services for an overseas manga distribution platform led by NTT Docomo, and from the IP Solutions business within the Others segment, where the core online lottery service “Slash Gift” saw growth in both the number of lotteries and user account registrations. Profit attributable to owners of the parent was adversely impacted by a conservative forecast for the recoverable value of deferred tax assets of a consolidated subsidiary in an effort to ensure financial soundness.

saw growth in both the number of lotteries and user account registrations. Profit attributable to owners of the parent was adversely impacted by a conservative forecast for the recoverable value of deferred tax assets of a consolidated subsidiary in an effort to ensure financial soundness. Nonetheless, net income for the period increased year-on-year as a result of the above-noted increase in consolidated ordinary profit and also thanks to gains on the sale of shares in conjunction with the initial public offering of several investee companies.

3. Recording of extraordinary loss, consolidated basis In order for the Company to achieve further growth as a group, it is necessary to optimize limited business resources and allocate these more efficiently and effectively. In light of the current highly uncertain market environment and with a view to ensuring financial soundness, we have conservatively estimated the recoverable value of investment securities held by the Group and recorded a ¥593 million loss on valuation of investment securities as an extraordinary loss. 4. Recording of non-operating expense and extraordinary loss, non-consolidated basis After carefully assessing the full-year performance outlook of our operating subsidiaries and with a view to ensuring financial soundness, we conservatively estimated the recoverable amounts for loans and investments in affiliated companies. As a result, we recorded a ¥5,776 million provision for doubtful accounts as a non-operating expense and a ¥2,454 million loss on valuation of shares held in affiliated companies as an extraordinary loss. Please note that the amounts of ¥5,776 million in non-operating expense and of ¥2,422 million in extraordinary loss are related to consolidated subsidiaries and therefore have only a minor impact on consolidated financial results. － 2 －

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Words: 650
Format: PDF
Type: Financial

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