Kadokawa Corporation Summary of Consolidated Financial Results for the Three Months Ended June 30, 2022

Kadokawa Corporation’s financial results for the first quarter ended June 30, 2022, demonstrate significant growth driven by the company’s global media mix strategy. The primary objective of this reporting period was to track the performance of its diversified portfolio, which spans publication, video, gaming, web services, and education. During this quarter, the company achieved net sales of 64,264 million yen, representing a 23.5% year-on-year increase, while operating profit rose by 63.9% to 9,622 million yen. Profit attributable to owners of the parent reached 7,638 million yen, an 89.8% increase compared to the same period in the previous year.

The most notable performance driver was the Game Business, which saw net sales surge by 570.9% to 12,582 million yen, largely due to the global success of the title Elden Ring. Conversely, the Publication and Video segments experienced declines in operating profit, attributed to reactionary falls following the high performance of popular works in the previous year and increased production expenses. The Education business, now elevated to a formal reporting segment, showed steady growth with an 11.0% increase in net sales and a 15.4% increase in operating profit.

The scope of this report covers Kadokawa’s consolidated global operations for the three-month period ending June 30, 2022. The financial statements were prepared in accordance with Japanese GAAP. The company maintains a strong financial position with total assets of 326,717 million yen and an equity ratio of 54.0%. Management has maintained its full-year forecast for the fiscal year ending March 31, 2023, projecting net sales of 238,100 million yen, reflecting a cautious outlook despite the strong start to the fiscal year.