Japanese entertainment giant KADOKAWA reported mixed second-quarter results, with gaming success offset by cyber security challenges. The company’s gaming division saw profits surge 50.8% to ¥6.07 billion ($40.5 million), driven by strong global sales of “ELDEN RING SHADOW OF THE ERDTREE” downloadable content.
Overall quarterly revenue rose 9.8% to ¥136.32 billion ($908 million), while operating profit increased 23.5% to ¥10.63 billion ($70.8 million). However, net income fell 25% to ¥3.1 billion ($20.6 million) after booking ¥2.3 billion in extraordinary losses related to a June cyber attack.
The company’s publishing segment posted a 9.3% revenue increase to ¥72.47 billion, benefiting from strong e-book sales and Asian market growth. The animation unit saw a 20% jump in sales to ¥26.43 billion, boosted by overseas streaming deals for titles like “Oshi no Ko.”
KADOKAWA revealed an expanded game development pipeline with 20 console titles and 6 mobile games in production. However, the company lowered its full-year profit forecast, expecting net income to decline 20.9% to ¥9 billion due to ongoing cyber attack recovery costs.
