Kadokawa Financial Results for the 3rd Quarter Ended December 31, 2022

Kadokawa achieved robust financial growth during the first nine months of the fiscal year ending March 31, 2023, characterized by a 20.4% increase in consolidated net sales and a 51.7% surge in operating profit. This strong performance, underpinned by the global commercial success of the title Elden Ring, prompted an upward revision of full-year forecasts. The company now projects a 12.4% increase in net sales and a 13.4% rise in operating profit compared to the previous fiscal year, reflecting a confident outlook despite localized operational challenges.

The gaming segment serves as the primary engine for this expansion, with the company actively leveraging its intellectual property to fuel cross-media strategies and future development pipelines, including the upcoming release of Armored Core VI. Beyond gaming, the organization is experiencing high growth in its animation division and steady progress within the education sector. Efforts to revitalize the niconico platform through diversified revenue streams remain a key strategic priority, ensuring that the company maintains a balanced portfolio across its diverse business segments.

International expansion has become a cornerstone of the company’s financial health, with overseas business revenue climbing 81% year-on-year. North American markets have been particularly instrumental in this growth, contributing to a total overseas revenue share of 21.6%. While the company faced a temporary decline in net profit attributable to owners of the parent due to structural reforms and asset disposal losses at its Tokorozawa logistics facility, the broader trajectory remains positive. By prioritizing global reach and intellectual property maximization, the company is successfully transitioning toward a more internationally integrated business model.