Enix

Square Enix Holdings Financial Results: Fiscal Year Ended March 31, 2016

Square Enix Holdings reported strong financial growth for the fiscal year ended March 31, 2016, driven by a robust performance in its Digital Entertainment segment.

• Square Enix reported strong fiscal year 2016 growth, with net sales rising 27.5% to 214.1 billion yen and net income increasing 102.3% to 19.9 billion yen compared to the previous year.
• Operating income grew 58.4% to 26.0 billion yen in fiscal 2016, with the company projecting further growth to 30.0 billion yen for the fiscal year ending March 31, 2017.
• The Digital Entertainment segment remains the primary revenue driver, contributing 159.0 billion yen in sales in 2016 with a projected increase to 200.0 billion yen for 2017.

NEXON Q4 2015 Earnings Conference Call

NEXON’s 2015 fourth-quarter earnings call highlights a year of significant financial growth, characterized by a 10% year-over-year increase in total revenue to ¥190.3 billion and an 88% surge in net income to ¥55.1 billion.

• Nexon achieved significant 2015 financial growth with total revenue rising 10% year-over-year to ¥190.3 billion and net income surging 88% to ¥55.1 billion.
• Mobile revenue grew by 23% in 2015, bolstered by the successful launches of titles such as DomiNations and HIT.
• Q4 2015 revenue reached ¥45.8 billion, exceeding internal expectations due to strong performance from Dungeon&Fighter in China and the launch of HIT in Korea.

Square Enix Holdings Nine-Month Period Financial Results: Nine-Month Period Ended December 31, 2015

Square Enix Holdings experienced significant financial growth during the nine-month period ending December 31, 2015, driven primarily by strong performance in its Digital Entertainment segment.

• Square Enix reported strong growth for the nine-month period ending December 31, 2015, with net sales rising to 152.8 billion yen, a 33.9 billion yen increase compared to the same period in 2014.
• Operating income grew significantly by 9.0 billion yen year-over-year, reaching 23.8 billion yen for the nine-month period.
• The Digital Entertainment segment was the primary driver of growth, contributing 110.1 billion yen in net sales and 23.1 billion yen in operating income, an increase of 34.7 billion yen and 9.0 billion yen respectively over the prior year.

Square Enix Montreal on the hard learnings going from console to mobile success

Square Enix Montreal’s transition from a large-scale console developer to a successful mobile publisher serves as a case study in the necessity of organizational agility and strategic focus.

• Platform store discovery drives over 50 percent of user acquisition, significantly outperforming traditional media and social channels.
• Securing 'Editor’s Choice' or 'Game of the Year' status on app stores can triple revenue compared to standard featuring while generating millions of additional impressions.
• Transitioning from console to mobile requires hiring for a mobile-first mindset, as console-hardened developers often struggle with the leaner, iterative development cycles required for mobile.

2016 Annual Report

Square Enix achieved record financial performance for the fiscal year ended March 31, 2016, characterized by a 27.5% increase in net sales to ¥214,101 million and a 102.3% surge in profit attributable to owners of the parent.

• Net sales for the fiscal year ended March 31, 2016, exceeded ¥200 billion for the first time, reaching ¥214,101 million, a 27.5% increase from the prior fiscal year, and operating income increased by 58.4% to ¥26,018 million.
• The MMO domain, specifically "DRAGON QUEST X" and "FINAL FANTASY XIV," generated stable earnings, with new content and expansion packs released in the fiscal year ended March 2016 successfully retaining and attracting players.
• The Amusement Business Segment saw brisk performance with year-on-year existing revenue topping 100%, driven by strong demand from foreign tourists, especially from Asia, and the successful rollout of an e-money system.

Square Enix Holdings Financial Results Briefing: Six-Month Period Ended September 30, 2015

Square Enix Holdings reported strong financial growth for the six-month period ending September 30, 2015, characterized by increased net sales and improved operating margins.

• Square Enix reported consolidated net sales of ¥86.4 billion for the six-month period ending September 30, 2015, a year-over-year increase of ¥13.2 billion.
• Operating income rose by ¥4.1 billion to ¥12.6 billion, with the operating margin improving by 3 percentage points to 15%.
• The Digital Entertainment segment served as the primary earnings driver, generating ¥60.2 billion in net sales through strong performance in MMO expansion packs and smart device/PC browser games.

Square Enix Holdings Financial Results: Six-Month Period Ended September 30, 2015

Square Enix Holdings reported strong financial growth for the six-month period ending September 30, 2015, driven primarily by the performance of its Digital Entertainment segment.

• Square Enix reported consolidated net sales of 86.4 billion yen and an operating income of 12.6 billion yen for the six-month period ended September 30, 2015, representing a year-over-year increase of 13.2 billion yen in sales and 4.1 billion yen in operating income.
• The Digital Entertainment segment remains the primary revenue driver, contributing 60.2 billion yen in net sales and 12.9 billion yen in operating income, with an operating margin of 21.5%.
• Quarter-over-quarter operating profit declined due to a reactionary drop in MMO expansion disc sales, losses on the evaluation of smart device and PC browser game content, and increased advertising expenses for HD games.

NEXON FY2015 Q2 Earnings Presentation: Summary of Q&As

This summary of the Nexon FY2015 Q2 earnings question-and-answer session outlines the company’s strategic outlook, operational performance, and financial expectations.

Nexon Q2 2015 Earnings Call

Nexon achieved robust financial growth during the first half of 2015, characterized by a 12 percent year-over-year revenue increase to JPY 94.6 billion and a substantial 56 percent rise in net income.

• Nexon reported a 12 percent year-over-year revenue increase to JPY 94.6 billion and a 56 percent rise in net income for the first half of 2015.
• The company successfully shifted its mobile revenue mix, with native mobile applications now accounting for approximately two-thirds of total mobile earnings.
• Core PC franchises, specifically Dungeon&Fighter and MapleStory, remain the primary drivers of the company's financial performance.

Reference Materials: Three-Month Period Ended June 30, 2015

Square Enix Holdings Co., Ltd. reported strong financial growth for the three-month period ending June 30, 2015, characterized by significant increases in both net sales and operating income compared to the same period in the previous year.

• Square Enix reported a strong start to the fiscal year ending March 31, 2016, with net sales increasing to 42.3 billion yen and operating income rising to 7.9 billion yen for the quarter ended June 30, 2015.
• The Digital Entertainment segment was the primary growth driver, with net sales increasing by 6.8 billion yen and operating income nearly doubling to 8.2 billion yen compared to the same period in 2014.
• Operating margins for the Digital Entertainment segment improved significantly, rising from 19.2% in the April-June 2014 quarter to 27.0% in the April-June 2015 quarter.

Consolidated Financial Results for the Three-Month Period Ended June 30, 2015: Square Enix Holdings

Square Enix Holdings reported strong financial growth for the three-month period ending June 30, 2015, driven primarily by the robust performance of its Digital Entertainment segment.

• Square Enix reported strong Q1 growth for the period ending June 30, 2015, with net sales reaching ¥42,282 million (up 12.0% YoY) and operating income rising 56.1% to ¥7,912 million.
• The Digital Entertainment segment, the company's primary revenue driver, saw net sales increase 29.2% to ¥30,297 million and operating income jump 81.6% to ¥8,191 million.
• Digital Entertainment growth was fueled by strong performance in smartphone and PC browser titles like 'DRAGON QUEST MONSTERS SUPER LIGHT' and 'FINAL FANTASY RECORD KEEPER,' alongside steady results from 'FINAL FANTASY XIV' and 'DRAGON QUEST X'.

Square Enix Holdings Financial Results Briefing: FY2015/3

Square Enix achieved significant financial growth during the 2015 fiscal year, characterized by an 8.3 percent increase in net sales to 167.9 billion yen and a substantial 55.8 percent rise in operating income to 16.4 billion yen.

• Square Enix reported strong FY2015/3 growth with net sales rising 8.3% to 167.9 billion yen and operating income surging 55.8% to 16.4 billion yen.
• Management projects FY2016 net sales of 200–220 billion yen and operating income of 17–25 billion yen, aiming to surpass the 200 billion yen revenue milestone for the first time.
• Financial performance was driven by mid-sized console titles, sustained profitability in massively multiplayer online games, and growth in the smart device segment.