KADOKAWA anime business profile: ownership, segments, and strategy
KADOKAWA owns some of the most influential anime and game IP in Japan, but its latest fiscal year shows that ownership does not guarantee segment profit.
Published: 2026-08-19. Updated: 2026-08-19.
Short answer: KADOKAWA Corporation is a Tokyo-listed media group whose five reported segments are Publication/IP Creation, Animation/Film, Gaming, Web Services, and Education/EdTech. For the fiscal year ended March 31, 2026, consolidated net sales were JPY 282.9 billion, operating profit was JPY 8.1 billion, and profit attributable to owners was JPY 1.3 billion. The Animation/Film segment generated JPY 48.3 billion in segment sales but recorded an operating loss of JPY 465 million, down from an operating profit of JPY 4.7 billion the previous year. Ownership is fragmented: the largest holders are Korea Securities Depository-Samsung at 10.4%, Japan Master Trust Trust Bank at 10.1%, and Sony Group at 10.1%.
What KADOKAWA is and who owns it
KADOKAWA Corporation is a Japanese media and entertainment conglomerate listed on the Tokyo Stock Exchange under code 9468. It was established in its current form in 2014 through the integration of KADOKAWA and DWANGO, and it operates publishing, animation, film, games, web services, and education businesses.
Ownership is dispersed. J-LiC's summary of KADOKAWA's latest securities report lists Korea Securities Depository-Samsung as the largest holder with 10.4%, followed by Japan Master Trust Trust Bank at 10.1% and Sony Group at 10.1%. The top ten shareholders hold 59.1% combined, so no single shareholder controls the company.
How KADOKAWA reports its anime business
KADOKAWA reports its anime activities within the Animation/Film segment. That segment covers the planning, production, and distribution of anime and live-action films, video distribution licensing, and sales of packaged video software. The segment does not separate anime from live-action in public disclosures.
The company also owns or co-owns significant IP in its Publication/IP Creation segment, where manga, light novels, and other source material are created. Those titles often feed the Animation/Film segment through adaptations, but the segment boundaries mean anime revenue and publishing revenue are reported separately.
Where revenue and profit sit by segment
For the fiscal year ended March 31, 2026, Publication/IP Creation was the largest segment by sales at JPY 155.6 billion, but its operating profit fell to JPY 4.1 billion. Gaming was the most profitable segment at JPY 7.5 billion of operating profit on JPY 29.8 billion in sales. Animation/Film was the only segment to swing to an operating loss.
The Animation/Film segment's operating loss of JPY 465 million followed a year in which major sequels and secondary-use film income had boosted results. KADOKAWA attributed the decline to a lighter lineup of new titles and lower sales per title, particularly in animation.
KADOKAWA segment results, fiscal year ended March 31, 2026, in millions of JPY. Source: KADOKAWA FY2026 consolidated financial results and J-LiC segment summary.| Segment | Segment sales | Operating income | Operating margin |
|---|
| Publication/IP Creation | JPY 155,634M | JPY 4,054M | 2.6% |
| Animation/Film | JPY 48,256M | JPY -465M | -1.0% |
| Gaming | JPY 29,781M | JPY 7,541M | 25.3% |
| Web Services | JPY 20,515M | JPY 2,117M | 10.3% |
| Education/EdTech | JPY 17,166M | JPY 2,844M | 16.6% |
Subsidiaries and global footprint
As of March 31, 2026, KADOKAWA listed 57 subsidiaries and 11 equity-method affiliates in its group overview. Key group companies include DWANGO, the surviving entity of a 2025 merger that absorbed BookWalker and KADOKAWA Connected, and Kadokawa Daiei Studio, which operates film and virtual production facilities.
KADOKAWA is also the parent company of FromSoftware, the developer of Elden Ring and Dark Souls, which sits in the Gaming segment. In fiscal 2026, KADOKAWA added Italian manga publisher Edizioni BD and Singapore-based event organizer SOZO, which runs Anime Festival Asia, as consolidated subsidiaries.
Strategy and where anime fits
KADOKAWA's strategy is built around a 'global media mix with technology.' The idea is to create IP in publishing, adapt it into anime, games, and film, and then monetize it globally through licensing, events, streaming, and merchandise. Anime is the connective tissue between the publishing source material and the larger media mix.
To address the Animation/Film segment's recent loss, KADOKAWA announced plans to consolidate animation production into a new hub called Studio One Base and to establish KADOKAWA Creators, a training-focused studio. It also created Animec, a domestic theatrical distribution company jointly funded with Aniplex, to improve release control. The goal is to raise the share of in-house production and build a more stable pipeline of sequels and new hits.
What public disclosures do not show
KADOKAWA does not disclose revenue or profit for individual anime titles, nor does it separate anime from live-action within the Animation/Film segment. It also does not break out streaming revenue, merchandise revenue, or overseas licensing revenue for the segment.
This means the segment figure captures the scale of KADOKAWA's animation and film activities but cannot be used to judge which titles or revenue streams are driving performance. Analysts must rely on external data for that.
Currency and basis note: KADOKAWA reports in millions of Japanese yen under Japanese GAAP. Segment sales include intersegment transactions. Consolidated net sales are JPY 282,908 million for fiscal 2026.
Frequently asked questions
Who owns KADOKAWA?
KADOKAWA has no controlling shareholder. The largest holders as of March 31, 2026 were Korea Securities Depository-Samsung at 10.4%, Japan Master Trust Trust Bank at 10.1%, and Sony Group at 10.1%.
What are KADOKAWA's main business segments?
KADOKAWA reports five segments: Publication/IP Creation, Animation/Film, Gaming, Web Services, and Education/EdTech. Anime sits in the Animation/Film segment.
Is KADOKAWA's anime business profitable?
In the fiscal year ended March 31, 2026, the Animation/Film segment recorded an operating loss of JPY 465 million on segment sales of JPY 48.3 billion. The previous year it posted operating profit of JPY 4.7 billion.
Does KADOKAWA own FromSoftware?
Yes. FromSoftware, the developer of Elden Ring and the Dark Souls series, is a KADOKAWA subsidiary and sits in the Gaming segment.
Sources and methodology
- Summary of Consolidated Financial Results for the Year Ended March 31, 2026, KADOKAWA CORPORATION. Official FY2026 IR filing released May 14, 2026, with consolidated net sales, operating profit, segment results, segment definitions, and group overview.
- KADOKAWA Corporation (9468) segment information, J-LiC. Segment sales and operating income table derived from KADOKAWA's securities report for the fiscal year ended March 31, 2026.
- KADOKAWA Corporation (9468) major shareholders, J-LiC. Top shareholders and ownership percentages based on the fiscal year ended March 31, 2026 securities report.
- FromSoftware parent company confirms Elden Ring Nightreign DLC by end of March 2026, IGN Southeast Asia. Confirms KADOKAWA as parent company of FromSoftware, with references to KADOKAWA's financial report.