KADOKAWA announced its earnings after the market close on 13 August, reporting that consolidated net income for the current fiscal year had swung to a loss and sharply revising down its full-year outlook. Revenue and operating margin declined over the latest three months.
KADOKAWA's consolidated net income for the current fiscal year swung to a ¥4.54 billion loss. The company had been profitable in the same period of the previous year, while its full-year forecast was sharply reduced from a profit of ¥5.8 billion to ¥1 billion, implying a 21.8% decline in profit.
Quarterly results were revenue of ¥65.86 billion and operating income of ¥6.029 billion, but the operating margin on sales for the latest three months deteriorated to 1.9% from 3.6% in the same period of the previous year.
The revision to the earnings forecast for the current fiscal year is reflected in the difference between the previous and revised full-year net income forecasts, which was cut substantially from ¥5.8 billion to ¥1 billion. The revised outlook now indicates the possibility of a swing to a net loss.
The first-half plan for the current fiscal year calls for revenue of ¥133.933 billion and net income of ¥1.491 billion, among other figures. Although progress and changes from the previous fiscal year are indicated, the overall level of profitability requires attention.