Kadokawa announced reports for the second quarter of FY 2023 on November 2, 2022. The performance seems to be increasing a trend similar to its first quarter.

The anime business sales are estimated to grow by 20%. This year, popular titles such as Overlord IV and The Rising of the Shield Hero have generated profitable distribution sales and overseas sales.

The strong sales of anime for overseas and domestic distribution covered majority of the loss and increased profits.

Overall approximate sales were 122,639 million yen (17.0% increase), operating income was 13,237 million yen (33.2% increase), ordinary income was 16,897 million yen (59.3% increase), and net income was 10,537 million yen. 10,000 yen (48.1% increase).

The game business of the company has been one of the driving forces to increase revenue. Games like Elden Ring has done exceptionally well in the overseas market. Its sales were of 17,137 million yen are about 3.5 times higher than the same period last year. Whereas, operating income of 7,592 million yen is about 12 times higher.

The sales of the publication business were 66,142 million yen (up 1.6%) and operating income was 5,732 million yen (down 38.9% year-on-year), showing sluggish growth.

However, sales of digital books increased, but sales of paper books decreased slightly. Overseas, however, sales of paper books are increasing through the translation and publishing of YENPRESS, a subsidiary in North America.

In addition, the costs of creating vertical manga has increased due to investment in Human resource for the same. Furthermore, the effects of recent inflation and exchange rates have increased costs of materials and printing costs, and overall increase in overseas logistics costs. This being one of the reasons for the decline in profits.

Source: Animation Business Info