Kadokawa Financial Results: The 3rd Quarter Ended December 31, 2020

Kadokawa Corporation’s financial results for the third quarter ending December 31, 2020, demonstrate significant growth, characterized by record-high quarterly operating profits and improved profitability across all four primary business segments. The company achieved net sales of 152.7 billion JPY and an operating profit of 13.2 billion JPY for the nine-month period, representing year-on-year increases of 1.7% and 56.1%, respectively. This performance was bolstered by a 9.7% quarterly profit margin and the successful implementation of digital transformation initiatives, including Activity Based Working, which ensured operational stability despite the ongoing COVID-19 pandemic.

The publication segment served as a primary growth driver, benefiting from a surge in e-book sales and a notable reduction in the returns rate for paper-based books, which fell from 30% to 25%. The animation and game segments also performed strongly, with animation copyright licensing and international game sales contributing to higher margins. While the experiential and event-based businesses faced negative impacts from pandemic-related restrictions, the education segment saw steady growth in student enrollment.

Reflecting this robust performance, the company revised its full-year earnings forecast upward, projecting an operating profit of 14 billion JPY, a 73.1% increase over the previous fiscal year. In alignment with this positive outlook, Kadokawa increased its dividend forecast to 50 yen per share, which includes a 10-yen commemorative dividend for its 75th anniversary. The company continues to prioritize its global media mix strategy, focusing on the cross-platform development of intellectual property through animation, games, and digital publishing to sustain long-term value.