KADOKAWA CORPORATION: Summary of Consolidated Financial Results for the Year Ended March 31, 2023

Kadokawa Corporation achieved significant financial growth during the fiscal year ended March 31, 2023, reporting net sales of 255,429 million yen, a 15.5% increase over the previous period. Operating profit surged by 40.0% to 25,931 million yen, largely propelled by the exceptional performance of the Game Business, where the global success of Elden Ring drove a 173.4% increase in segment operating profit. Despite these gains, profit attributable to owners of the parent declined by 9.9% to 12,679 million yen, and earnings per share fell to 90.91 yen, influenced by factors including 3,183 million yen in impairment losses.

The company’s operations, primarily concentrated within the Japanese market, span a diverse portfolio including publishing, video, games, web services, and education. While the Game and Education segments demonstrated robust growth, the Web Service segment experienced an operating profit decline, and other business units continued to report losses. To support long-term expansion, the organization maintains a stable dividend policy of 30 yen per share, prioritizing the retention of internal reserves to fund strategic initiatives. A notable capital increase for FromSoftware, Inc. underscores a commitment to strengthening global intellectual property development.

Looking toward the 2024 fiscal year, the company projects net sales of 251.15 billion yen and an operating profit of 17.8 billion yen. The corporate strategy remains anchored in a "Global Media Mix with Technology" approach, which emphasizes digital transformation and the maximization of IP value. As the organization navigates a period of governance reform and evaluates a potential transition to IFRS accounting standards, it maintains a strong liquidity position with 131,389 million yen in cash and cash equivalents to facilitate ongoing business development and international scaling.