Consolidated Earnings Results: Fiscal Year Ended March 31, 2025

KADOKAWA’s fiscal year ending March 31, 2025 recorded a 7.7 % increase in consolidated net sales to ¥12,900 million, yet operating profit fell 9.8 % and net profit plunged 35.1 %. The sharp decline was largely attributable to a ¥2.4 billion cyber‑attack loss that hit the Web Services and Publication/IP Creation segments, coupled with a contraction in domestic paper‑book sales. Despite these setbacks, the Animation/Film and Gaming divisions achieved record sales—Animation/Film grew 10.9 % in net sales, while Gaming posted a 32.5 % rise driven by Elden Ring and its DLC—though Q4 profitability was eroded by higher impairment charges.

Education and EdTech emerged as the primary growth engine, with sales up 12.9 % and operating profit surging 37.9 %. New school partnerships, rising enrollment, and expanded digital publishing contributed to this performance, offsetting losses in other areas. E‑book sales reached ¥26.9 billion and international paper‑based book sales rose 18 %, reflecting a successful diversification of revenue streams.

Strategically, KADOKAWA is consolidating its animation studios, investing in talent development and digital logistics, and strengthening governance to accelerate cross‑segment media‑mix initiatives. The company’s board maintains a high proportion of independent directors (58.3 %) and a 25 % female director ratio, underscoring its commitment to robust corporate governance.

Overall, the FY2025 results demonstrate resilience through diversified content and education offerings, while highlighting the vulnerability of digital platforms to cyber threats. The company’s focus on expanding its IP ecosystem and improving operational efficiencies positions it for sustained growth across domestic and international markets.