Japanese media giant Kadokawa Corp. posted a 16.7% rise in nine-month profit to ¥7.37 billion ($49.5 million), weathering a major cyber attack that disrupted its online services.
The company recorded ¥2.34 billion in special losses related to creator compensation and system recovery after the June cyber incident that hit its Niconico video platform. Despite the setback, revenue climbed 10.5% to ¥206.59 billion, driven by strong performance in gaming and entertainment divisions.
Gaming emerged as the standout segment with a 44.5% profit surge to ¥8.66 billion, propelled by robust sales of downloadable content for FromSoftware’s Elden Ring. The animation unit saw profits jump 30.1% to ¥4.71 billion on streaming deals for popular series.
Web services remained the weak spot, swinging to an operating loss of ¥712 million from a ¥1.07 billion profit a year earlier, as the cyber attack forced a shutdown of Niconico services. The company said most operations resumed by September.
Kadokawa maintained its full-year forecast for net income to decline 20.9% to ¥9 billion, citing continued investments in growth initiatives.
