Square

Raport Bieżący Nr 40/2021

On August 29, 2021, PCF Group S.A. entered into a strategic investment agreement with London-based Square Enix Limited regarding the issuance of subscription warrants.

• PCF Group S.A. and Square Enix Limited formalized a long-term strategic partnership in August 2021, allowing the publisher to acquire equity in the developer based on commercial performance.
• The agreement grants Square Enix the right to acquire up to 1,555,922 Series C shares, representing approximately 1.8% of PCF Group’s total share capital.
• Warrants are issued in six tranches valued at 4.5 million PLN each, triggered every time PCF Group generates 45 million PLN in revenue from Square Enix projects like Outriders and Project Gemini.

Raport Bieżący Nr 38/2021

PCF Group S.A. reported on August 16, 2021, that it had not received any royalty payments from Square Enix Limited regarding the sales of the video game Outriders for the period ending June 30, 2021.

• As of August 16, 2021, PCF Group S.A. received zero royalty payments from Square Enix Limited for the game Outriders for the period ending June 30, 2021.
• The absence of royalties indicates that Outriders failed to exceed the net sales threshold required to recoup Square Enix's production, distribution, and promotion costs during the game's first full quarter post-launch.
• PCF Group S.A. reported a lack of transparency from the publisher, noting that Square Enix did not provide detailed data on sales figures, gross receipts, or total recoupable costs.

Square Enix Holdings Consolidated Financial Results: Three-Month Period Ended June 30, 2021

The consolidated financial results for the three-month period ended June 30, 2021, reflect a period of mixed performance for the group, characterized by a slight increase in net sales alongside a significant decline in operating income.

• Square Enix reported net sales of ¥88,604 million for the three-month period ended June 30, 2021, a 1.8% increase year-on-year, while operating income fell 29.5% to ¥17,316 million.
• The Digital Entertainment segment, the company's primary revenue driver, saw net sales decline 6.0% to ¥69,876 million and operating income drop 34.2% to ¥17,147 million.
• The Amusement segment recovered significantly, reporting ¥9,452 million in net sales—a 105.4% increase—and an operating profit of ¥344 million, compared to an operating loss of ¥1,512 million in the same period last year.

Square Enix Holdings Financial Results Briefing: Fiscal Year Ended March 31, 2021

Square Enix Holdings reported strong financial performance for the fiscal year ended March 31, 2021, achieving net sales of ¥332.5 billion and operating income of ¥47.2 billion.

Consolidated Interim Financial Report: Q1 2021

PCF Group S.A. demonstrated a period of strategic scaling and financial consolidation during the first quarter of 2021.

• Net profit for Q1 2021 was 7,818 thousand PLN, a decrease from 8,683 thousand PLN in Q1 2020. Basic and diluted earnings per share also decreased from 0.32 PLN in Q1 2020 to 0.27 PLN in Q1 2021.
• Sales revenue increased to 30,871 thousand PLN in Q1 2021 from 25,930 thousand PLN in Q1 2020, but gross profit from sales decreased from 11,809 thousand PLN to 10,603 thousand PLN in the same period.
• The company's share capital increased to 591,250.24 PLN by March 31, 2021, from 550,000 PLN at the end of 2020, due to the issuance of 2,062,512 Series B shares.

Aiming Q1 2021 Quarterly Report

This quarterly report details the financial performance of Aiming Inc. for the first quarter of 2021, covering the period from January 1 to March 31, 2021.

Square Enix Holdings Financial Results: Fiscal Year Ended March 31, 2021

Square Enix Holdings achieved record-high financial performance for the fiscal year ended March 31, 2021, driven primarily by the robust growth of its Digital Entertainment segment.

• Square Enix achieved record financial performance for the fiscal year ended March 31, 2021, with net sales reaching 332.5 billion yen and operating income hitting 47.2 billion yen.
• The Digital Entertainment segment was the primary growth driver, generating 263.9 billion yen in sales and 50.5 billion yen in operating income, fueled by major releases like Final Fantasy VII Remake and Marvel's Avengers.
• Digital sales in the entertainment segment grew significantly, rising from 204.5 billion yen in the previous fiscal year to 263.9 billion yen, reflecting a strong shift toward digital distribution.

Q1 2021 – Omówienie Wyników

The first quarter of 2021 financial performance review for PCF Group S.A. highlights the company’s growth trajectory and operational expansion within the global video game development sector.

• People Can Fly Group reported a 19.1% year-over-year revenue increase to 30.9 million PLN in Q1 2021, with development services accounting for 30.2 million PLN of that total.
• Net cash flow surged by 2,390% to 106.1 million PLN during the quarter, primarily fueled by capital activities and the company's public market presence.
• Net profit declined by 10% to 7.8 million PLN compared to Q1 2020, despite a 6.6% increase in adjusted EBITDA to 10.4 million PLN.

PCF Group Financial Results Presentation: 2020

The PCF Group 2020 financial results presentation outlines the company’s operational and fiscal performance, highlighting a period of significant growth driven by the successful release of the title Outriders.

• PCF Group achieved significant financial growth in 2020, with revenue reaching PLN 103.8 million (a 23.6% increase) and net profit surging 409.1% to PLN 24.6 million.
• Adjusted EBITDA rose by 76.7% to PLN 32.6 million, supported by a 730.5% increase in cash flow from operating activities.
• The company transitioned to a multi-project development model, with development revenue growing 89% through simultaneous work on Project Gemini for Square Enix and Project Dagger for Take-Two Interactive.

Consolidated Annual Report of PCF Group S.A. for 2020

PCF Group S.A. experienced a transformative fiscal year in 2020, characterized by significant corporate growth and the preparation for major international game releases.

• PCF Group S.A. achieved consolidated revenues of 95.5 million PLN and a net profit of 23.4 million PLN in 2020, driven primarily by work-for-hire contracts and milestone payments.
• The company successfully completed an initial public offering on the Warsaw Stock Exchange in late 2020 to fund a long-term strategy of diversifying its project portfolio.
• Development efforts in 2020 were centered on the final stages of the AAA title 'Outriders,' produced in collaboration with Square Enix.

PCF Group Annual Financial Report for the Fiscal Year Ended 31 December 2020

PCF Group S.A., a prominent video game developer headquartered in Warsaw, experienced a year of transformative growth and financial strengthening during the 2020 fiscal year.

• PCF Group achieved significant financial growth in 2020, with net profit increasing over twelvefold to 29.1 million PLN and total assets rising by 80% to 91.2 million PLN.
• Sales revenue grew by 75.8% to 83.5 million PLN, heavily reliant on a work-for-hire partnership with Square Enix for titles including Outriders and Project Gemini, which accounted for over 80% of total income.
• The company successfully executed an IPO on the Warsaw Stock Exchange and a subsequent Series B share issuance that raised 100.3 million PLN to fund international expansion.

Square Enix Holdings 1-3Q FY2021/3 Financial Results Briefing

Square Enix Holdings reported strong financial performance for the first three quarters of the fiscal year ending March 31, 2021, characterized by significant growth in its Digital Entertainment and Publication segments.

• Square Enix reported net sales of ¥253.6 billion and operating income of ¥41 billion for the first three quarters of FY2021/3, marking year-over-year increases of ¥63.9 billion and ¥13.3 billion, respectively.
• The Digital Entertainment segment drove growth with ¥203.5 billion in net sales, fueled by the profitability of HD titles like Final Fantasy VII Remake and Marvel's Avengers, as well as strong performance in mobile and browser games.
• Net income attributable to parent company shareholders fell by ¥800 million to ¥18.3 billion, primarily due to foreign exchange losses and extraordinary costs from pandemic-related operational suspensions.