Kadokawa Financial Results for the First Quarter Ended June 30, 2019

Kadokawa’s financial results for the first quarter ended June 30, 2019, demonstrate a significant improvement in profitability compared to the same period in the previous fiscal year. The company reported revenue of 49.7 billion yen, a modest increase of 113 million yen, while operating income surged to 3.47 billion yen from 399 million yen. This growth was driven by strong performance in the publication and video/game segments, alongside a successful return to profitability for the web services division following structural reforms.

The publication segment achieved record-high quarterly revenue, fueled by the continued digital transformation of e-books and e-magazines, which outperformed the broader industry. In the video and game segment, results were bolstered by robust overseas royalties from the title Sekiro: Shadows Die Twice, which reached 3.8 million units in global shipments by the end of the quarter, and sustained strength in anime licensing. Meanwhile, the web services segment, operated by Dwango, successfully returned to profitability with 534 million yen in operating income, attributed to effective cost controls, the withdrawal from underperforming business lines, and a stabilization in the decline of niconico premium members.

Despite the positive start to the fiscal year, the company maintained its full-year forecasts, citing a need for further assessment of business progress. The financial position remains stable, with total assets of 232.4 billion yen as of June 30, 2019. Management continues to focus on digital growth, the expansion of subscription-based fan communities, and the implementation of strategic structural reforms to ensure long-term sustainable growth across its diverse media portfolio.