FinancialAkatsuki
Consolidated Financial Statements for the Second Quarter and First Half-Year Period of Fiscal Year Ending March 31, 2026 (Japanese GAAP)
1 Nov 202512 pages~27 min full read
Akatsuki Inc. reported a 20.6% year-on-year decline in net sales to ¥9,915 million and a 42.4% drop in operating profit to ¥1,724 million, driven by the underperformance of existing game titles.
See it on page 4Net income attributable to owners increased by 31.4% to ¥1,853 million, supported by the launch of 'Kaiju No. 8 The Game' and growth in the Entertainment and Lifestyle segment.
See it on page 4The company expanded its consolidation scope by acquiring six new entities, including CRAYON Inc., Natee, Inc., and PAPABUBBLE JAPAN HD, Inc., resulting in a ¥3,352 million increase in goodwill.
See it on page 11Long-term borrowings rose to ¥6,763 million to fund the recent acquisitions and strategic shift toward diversifying revenue beyond traditional digital entertainment.
See it on page 9Management declined to provide consolidated operating forecasts for the remainder of the fiscal year ending March 31, 2026, citing high market volatility and uncertainty in the Games and Comic sectors.
See it on page 5The company restructured its reporting segments to merge Games and Comics while elevating the Entertainment and Lifestyle division to reflect its increased materiality.
See it on page 11Akatsuki Inc. experienced a period of strategic transition during the first half of the fiscal year ending March 31, 2025, characterized by a contraction in core gaming revenue alongside aggressive expansion into new business segments. Net sales declined 20.6% year-on-year to ¥9,915 million, while operating profit fell 42.4% to ¥1,724 million. This downturn was primarily driven by a reactionary decline in the performance of existing game titles. However, net income attributable to owners rose 31.4% to ¥1,853 million, bolstered by the successful launch of Kaiju No. 8 The Game and the growing contribution of the Entertainment and Lifestyle segment.
The financial structure underwent significant shifts as the company expanded its consolidation scope to include six new entities, most notably CRAYON Inc., Natee, Inc., and PAPABUBBLE JAPAN HD, Inc. These acquisitions, totaling several billion yen, resulted in a provisional goodwill increase of ¥3,352 million and a rise in long-term borrowings to ¥6,763 million. To reflect this evolving business model, the company restructured its reporting segments, merging Games and Comics while elevating the Entertainment and Lifestyle division due to its increased materiality and growth potential.
Despite the growth in net income and the expansion of the IP-driven lifestyle business, management has opted not to provide consolidated operating forecasts for the remainder of the fiscal year. This decision stems from high levels of uncertainty within the Games and Comic sectors, where market volatility makes precise projections difficult. The current strategy focuses on balancing the stabilization of the core gaming portfolio with the integration of newly acquired subsidiaries to diversify revenue streams beyond traditional digital entertainment.
