The closure of cinemas and extra expenses incurred in the Video Game Business segment (perhaps due to the production of Elden Ring) have caused profit in this segment to fall by 13.2% year-on-year to 3,401 million yen (~$31.6 million), however net sales were up 0.04% year-on-year to 48,314 million yen (~$450 million).
After recording a loss of 2,576 million yen (~$24 million) in the previous fiscal year in its Web Service Business, the Company witnessed a massive turn around for the fiscal year ended March 31, 2020. Profit for this segment rose to 2,788 million yen (~$25.98 million), though net sales declined 4.3% year-on-year to 24,739 million yen (~$230 million). The recovery, according to Kadokawa Corp. is thanks to the business structural reforms which allowed the Company to decrease its expenses mainly in outsourcing and communication expenses.
The condition of its Web Service Business in particular, its “Niconico Video” platform has seen the number of monthly dues-paying members falling from 1.8 million at the end of the previous fiscal year to 1.63 million members. However, it saw the number of dues-paying members for “Niconico Channel” jumped to 1.17 million where the figure was recorded to be lower in the previous fiscal year (0.95 million members). The platform allows members to distribute videos, perform live broadcasts and do blogging. The revenue for the segment was also boosted thanks to a couple of events held by the group. For instance, the “Niconico Cho Kaigi 2019” reached a new high with 168,248 participants, at the same time, “Animelo Summer Live 2019 – STORY -” attracted 84,000 visitors in three days, where the number grew more than when it was held the previous fiscal year. In April 2020, the Group had to resort hosting the “Niconico Cho Kaigi” event online due to COVID-19. But, saw the number of website visitors grew more than twice than the previous fiscal year to over 16.38 million people, though it cautioned that the Company is uncertain whether if they are able to hold real-world events for some time. Still, Kadokawa looks to propose new ways to organize events that can be enjoyed by the masses.