Kadokawa Dwango Financial Results for the Fiscal Year Ended March 31, 2016

Kadokawa Dwango concluded the fiscal year ending March 31, 2016, with a robust financial performance, reporting 200.9 billion yen in revenue and 9.1 billion yen in operating income. These results surpassed initial full-year forecasts, bolstered by the strength of the Books and IP division, which benefited significantly from the expansion of e-book services and successful structural reforms. The company maintained a solid financial foundation, ending the period with total assets of 201.6 billion yen and shareholders' equity surpassing 100 billion yen.

Growth was further supported by the performance of the Video and Game segment, where anime-related packaged products and major titles such as Dark Souls III provided substantial contributions. While the Information Media business encountered headwinds due to a contracting market, the niconico platform maintained stable premium membership growth. Additionally, the company successfully mitigated operating losses within its event segments through rigorous cost control measures and increased exhibition revenue, demonstrating operational resilience across its diverse portfolio.

Looking ahead, the organization is prioritizing long-term growth through the "Cool Japan" initiative, focusing on international alliances and the enhancement of digital services like Kakuyomu and ComicWalker. To facilitate these strategic objectives, the company is reorganizing its reporting structure into Web Services, Publication, and Video and Game segments. While this transition involves significant investment in new services and structural reforms, the company anticipates a temporary decline in operating income for the upcoming fiscal year as it pivots toward these long-term digital and global expansion goals.