Kadokawa Dwango Corporation Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2019

The consolidated financial results for Kadokawa Dwango Corporation for the nine-month period ending December 31, 2019, demonstrate a significant recovery in profitability compared to the same period in the previous fiscal year. The primary objective of the report is to detail the company’s financial performance, including operating results, cash flow, and financial position, prepared in accordance with Japanese GAAP.

The company reported net sales of 150.18 billion yen, representing a slight year-on-year decline of 1.3 percent. Despite this marginal decrease in revenue, operating profit surged by 165.7 percent to 8.46 billion yen, and ordinary profit increased by 110.3 percent to 9.19 billion yen. Most notably, the company transitioned from a net loss of 2.17 billion yen in the prior year to a profit attributable to owners of the parent of 7.88 billion yen. This turnaround was supported by a reduction in the cost of sales and a decrease in extraordinary losses, such as impairment charges, alongside gains from the sale of non-current assets.

The scope of the report covers the consolidated operations of the corporation for the nine months spanning April 1, 2019, to December 31, 2019. As of the end of the third quarter, the company maintained a solid financial position with total assets of 240.51 billion yen and an equity ratio of 44.6 percent. While cash and cash equivalents decreased significantly to 30.33 billion yen due to substantial investment activities, the company remains optimistic, forecasting a full-year operating profit of 10 billion yen. No changes in significant subsidiaries or accounting policies were reported during this period, and the results reflect a stable operational structure focused on sustained profitability.