Kadokawa (9468) investor relations material

Executive summary

• Net sales rose 1.8% year-over-year to ¥282,908 million, but operating profit fell 51.3% to ¥8,102 million and net profit declined 82.7% to ¥1,278 million.

• Profitability was impacted by downscaling of titles, higher production and labor costs, and upfront investments, especially in publication and animation.

• Cyberattack impacts from FY2024 disappeared, aiding recovery in Web Services and Publication/IP Creation.

• Fourth quarter saw a turnaround, with net sales up 12.0% and operating profit up 112.2% year-over-year, driven by structural reforms and strong animation lineup.

• Comprehensive income declined sharply to ¥1,320 million from ¥16,441 million in the prior year.

Financial highlights

• FY2026 net sales: ¥282,908 million (+1.8% YoY); operating profit: ¥8,102 million (-51.3% YoY); ordinary profit: ¥11,701 million (-34.1% YoY); net profit: ¥1,278 million (-82.7% YoY); EBITDA: ¥17,600 million (-29.3% YoY).

• Q4 net sales: ¥79,917 million (+12.0% YoY); operating profit: ¥1,724 million (+112.2% YoY); ordinary profit: ¥2,593 million (+402.4% YoY); net profit: -¥933 million.

• Gross profit decreased to ¥96,753 million from ¥99,075 million year-over-year.

• Operating margin fell to 2.9% from 6.0% year-over-year.

• Cash and cash equivalents at period-end dropped to ¥90,774 million from ¥129,674 million.

Outlook and guidance

• FY2027 forecast: net sales ¥300,300 million (+6.1%), operating profit ¥10,100 million (+24.7%), ordinary profit ¥12,000 million (+2.6%), net profit ¥5,800 million (+353.7%), EBITDA ¥20,100 million (+14.2%).

• Publication/IP Creation and Animation/Film segments expected to drive profit growth through structural reforms and new hit titles.

• Gaming profit to decline due to absence of major titles, but sales to rise on new mobile releases.

• Dividend forecast maintained at ¥30 per share.

• Strategic focus on global IP expansion, business structural reforms, and overseas growth.