Kadokawa revises forecast downward, records goodwill amortization

Kadokawa Corporation announced a downward revision to its full-year consolidated earnings forecast for the fiscal year ending March 31, 2026. This is due to an extraordinary loss of JPY 2,700 million from goodwill amortization related to subsidiary Douga Kobo Inc., and mixed performance across segments.

The revised forecast projects net sales of JPY 278,200 million, operating profit of JPY 10,300 million, ordinary profit of JPY 12,400 million, and profit attributable to owners of parent of JPY 4,900 million. These figures represent significant declines compared to the previously announced forecast on May 8, 2025.

The revision reflects stronger-than-expected sales of the new title ELDEN RING NIGHTREIGN in the Gaming Segment. However, sales and efficiency in the Publication/IP Creation Segment were lower than anticipated due to smaller title sizes and increased costs. The Animation/Film Segment also underperformed, with revenue per title falling below expectations.

Additionally, Kadokawa's total assets decreased by JPY 25,490 million to JPY 384,539 million as of September 30, 2025, primarily due to long-term borrowing repayments. Goodwill increased by JPY 2,427 million in the Publication/IP Creation Segment from the acquisition of Edizioni BD S.r.l. but decreased by JPY 2,700 million in the Animation/Film Segment due to the goodwill amortization.