Kadokawa Dwango Corporation Summary of Consolidated Financial Results: Three Months Ended June 30, 2018

The consolidated financial results for Kadokawa Dwango Corporation for the three months ended June 30, 2018, reflect a period of mixed performance characterized by a slight decline in top-line revenue alongside a notable recovery in bottom-line profitability. Net sales for the quarter reached 49,631 million yen, representing a marginal year-on-year decrease of 0.6 percent. Despite this contraction in sales, the company achieved an ordinary profit of 1,111 million yen, a significant 73.7 percent increase compared to the same period in the previous year. Profit attributable to owners of the parent turned positive at 368 million yen, contrasting with a loss of 23 million yen reported in the first quarter of 2017.

Operating profit, however, faced downward pressure, falling 49.5 percent to 399 million yen from 790 million yen in the prior year. This decline in operating performance was offset by improved non-operating income and a substantial reduction in non-operating expenses, which dropped from 661 million yen to 37 million yen year-on-year. The company’s financial position remained stable, with total assets of 232,276 million yen and an equity ratio of 45.7 percent as of June 30, 2018.

Looking ahead to the full fiscal year ending March 31, 2019, the company maintains an optimistic outlook. Forecasts project net sales of 231,000 million yen, an 11.7 percent increase, and a profit attributable to owners of the parent of 5,400 million yen, representing a projected 420.1 percent growth. These results were prepared in accordance with Japanese GAAP, and the company continues to focus on its core operations within the Japanese market while managing its capital structure and treasury share holdings.