Kadokawa (9468) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue rose 11.9% year-over-year to ¥65.9B, operating profit surged 84.5% to ¥6.0B, and ordinary income increased 26.2% to ¥7.7B, despite a major cyberattack disrupting core businesses and causing a ¥2.6B revenue and ¥1.9B operating profit hit in Q1.

• Net profit fell 10.1% to ¥3.5B due to special losses from the cyberattack impacting Niconico services.

• Growth in digital books, overseas publishing, anime, and games offset declines in domestic print and web services.

Financial highlights

• Q1 revenue: ¥65.9B (+11.9% YoY); operating profit: ¥6.0B (+84.5% YoY); net profit: ¥3.5B (−10.1% YoY).

• EBITDA: ¥7.8B (+66.7% YoY); operating margin improved to 9.2% from 5.6%.

• Cyberattack led to Q1 revenue loss of ¥2.6B and operating profit loss of ¥1.9B; full-year impact estimated at ¥8.4B revenue and ¥6.4B operating profit.

• Special losses of ¥2.0B in Q1, with full-year estimate at ¥3.6B, mainly for compensation and recovery.

• Cash and equivalents at quarter-end were ¥75.7B, down from ¥79.8B at the previous year-end.

Outlook and guidance

• FY2025 full-year revenue forecast maintained at ¥271.3B (+5.1% YoY); operating profit revised down by ¥0.9B to ¥15.6B (−15.5% YoY); net profit forecast at ¥9.7B (−14.8% YoY).

• Growth in digital books, anime, and games expected to offset cyberattack impact; recovery in print and web services anticipated from August onward.

• Dividend forecast maintained at ¥30 per share for the year.