KADOKAWA reported impressive growth in its first-quarter results for the fiscal year ending March 2025, driven largely by the success of its game segment. Sales surged by 11.9% year-on-year to ¥65.86 billion, while operating profit jumped 84.5% to ¥6.029 billion. However, net profit decreased by 10.1% to ¥3.454 billion, primarily due to a ¥2 billion extraordinary loss linked to a cyberattack and compensation to creators on its Niconico platform.
The game business was a standout, with sales skyrocketing by 80.2% to ¥7.764 billion, fueled by the domestic success of “ELDEN RING SHADOW OF THE ERDTREE,” a downloadable content (DLC) that contributed to a 108.1% increase in operating profit to ¥2.406 billion. The release also boosted repeat sales of the main “ELDEN RING” game, highlighting the segment’s growing influence.
In response to its strong Q1 performance, KADOKAWA revised its full-year forecast, raising its sales target from ¥25.5 billion to ¥29.6 billion and operating profit from ¥2.6 billion to ¥5.7 billion. The company expects continued momentum from “ELDEN RING” and additional royalty income from overseas releases.
Despite the upward adjustments, KADOKAWA faced challenges in its Web Services segment, where revenue dropped 12.9% due to the cyberattack, leading to an operating loss of ¥397 million. Nonetheless, the company expects a gradual recovery as it restores services in the coming months.
Looking ahead, KADOKAWA projects full-year sales of ¥271.3 billion, a 5.1% increase, while operating profit is expected to decrease by 15.5% to ¥15.6 billion, reflecting the ongoing impact of the cyberattack. However, the company remains optimistic about the performance of its growth segments, particularly in gaming, anime, and publishing.
KADOKAWA also unveiled the ranking of top IP sales during the Q1. “Dungeon Meshi” emerging as the clear leader. The title generated over ¥2 billion (US$13.8 million) in sales across publishing, anime, and rights income, making it the top earner for the company. The exact figures were not disclosed, but “Dungeon Meshi” outpaced the competition significantly, with sales more than doubling those of the second-place title. “KonoSuba: God’s Blessing on this Wonderful World!” secured the second spot, bringing in nearly ¥1 billion (US$6.9 million). “Oshi no Ko” followed in third place, driven solely by anime revenue, as the publishing rights are held by another company.
Other notable entries in the rankings included “Unnamed Memory,” “God is Hungry for Games,” and “I Want to Become the Powerful in the Shadows!,” showcasing the diversity and strength of KADOKAWA’s portfolio in both publishing and anime sectors.
