Square

Square Enix Holdings Financial Results Briefing: FY2020/3

Square Enix Holdings reported financial results for the fiscal year ended March 31, 2020, highlighting a period of mixed performance across its diverse business segments.

Financial Results Briefing Session: Fiscal Year Ended March 31, 2020

The financial results for the fiscal year ended March 31, 2020, reflect a period of strategic transition for Square Enix Holdings Co., Ltd.

• Square Enix reported a net sales decline of 10.7 billion yen to 260.5 billion yen for the fiscal year ended March 31, 2020, though operating income increased by 8.1 billion yen to 32.7 billion yen.
• The Digital Entertainment segment, the company's largest, saw operating income rise to 35.3 billion yen (up 6.4 billion yen) despite a net sales decrease, driven by strong performance in MMOs and mobile/PC browser games.
• The Games for Smart Devices/PC Browser category reached 106.4 billion yen in net sales, fueled by the successful launches of 'Romancing SaGa Re;univerSe' and 'DRAGON QUEST WALK'.

Square Enix Holdings 3Q FY2020/3 Financial Results Briefing

Square Enix Holdings reported strong financial growth for the first three quarters of the fiscal year ending March 31, 2020.

• Square Enix reported net sales of ¥189.7 billion and operating income of ¥27.7 billion for the first three quarters of FY2020/3, marking a year-over-year operating income increase of ¥15.4 billion.
• The Digital Entertainment segment served as the primary growth driver, generating ¥29.5 billion in operating income through strong performance in MMOs and smart device titles.
• MMO revenue was bolstered by the release of expansion packs for Final Fantasy XIV and Dragon Quest X, while smart device growth was driven by Romancing SaGa Re;univerSe and Dragon Quest Walk.

Financial Results: Nine-Month Period Ended December 31, 2019

Square Enix Holdings Co., Ltd. reported its financial results for the nine-month period ending December 31, 2019, demonstrating significant growth in profitability compared to the same period in the previous fiscal year.

• Square Enix reported a strong nine-month performance for the period ending December 31, 2019, with operating income rising to 27.7 billion yen, a significant increase from 12.3 billion yen in the same period of the previous fiscal year.
• The Digital Entertainment segment's MMO business drove growth through the release of expansion packs for 'FINAL FANTASY XIV' and 'DRAGON QUEST X,' which led to a sharp increase in subscriber numbers.
• Games for smart devices and PC browsers saw improved year-over-year performance, bolstered by the successful releases of 'Romancing SaGa Re;univerSe' and 'DRAGON QUEST WALK.'

Square Enix Holdings 2Q FY2020/3 Financial Results Briefing

Square Enix Holdings reported positive financial growth for the first half of the fiscal year ending March 31, 2020.

• Square Enix reported strong H1 FY2020/3 growth with net sales of ¥120.7 billion (up 8.2% YoY) and operating income of ¥15.9 billion (up 62.9% YoY).
• The Digital Entertainment segment's MMO sub-segment and mobile titles like 'Dragon Quest Walk' and 'Romancing SaGa Re;univerSe' were primary drivers of financial performance.
• The HD Games sub-segment recorded an operating loss due to development cost amortization and a ¥2.35 billion impairment loss on content production.

Financial Results Briefing Session: Six-Month Period Ended September 30, 2019

Square Enix Holdings Co., Ltd. reported its financial results for the six-month period ending September 30, 2019, reflecting a period of growth driven by strong performance in its digital entertainment and publication segments.

• Square Enix reported a strong first half for the fiscal year ending March 31, 2020, with net sales reaching 120.7 billion yen and operating income rising to 15.9 billion yen, a significant increase from 9.7 billion yen in the same period the previous year.
• The Digital Entertainment segment's MMO business saw growth in both net sales and operating income, driven by the release of the 'Final Fantasy XIV: Shadowbringers' expansion pack and an increase in paying subscribers.
• Games for smart devices and PC browsers performed well, with net sales and operating income rising due to the continued success of 'Romancing SaGa Re;univerSe' and the September 2019 launch of 'Dragon Quest Walk'.

Bushiroad Consolidated Financial Results for the Fiscal Year Ended July 31, 2019

Bushiroad achieved significant financial growth during the fiscal year ending July 31, 2019, characterized by an 11.4 percent increase in net sales to 32.18 billion yen and an operating profit of 3.06 billion yen.

• Bushiroad reported net sales of 32.18 billion yen for the fiscal year ending July 31, 2019, representing an 11.4 percent year-over-year increase.
• The company achieved an operating profit of 3.06 billion yen and earnings per share of 132.12 yen.
• Financial growth was primarily driven by the performance of the BanG Dream! franchise and the international expansion of New Japan Pro-Wrestling, which included an event at Madison Square Garden.

Square Enix Holdings 1Q FY2020/3 Financial Results Briefing

Square Enix Holdings reported strong financial results for the first quarter of the fiscal year ending March 31, 2020, characterized by significant year-over-year growth in both net sales and operating income.

• Square Enix reported strong Q1 FY2020/3 results with net sales of ¥53.3 billion (up 19.1% YoY) and operating income of ¥7.1 billion (up 85.8% YoY).
• Growth was primarily driven by the Digital Entertainment segment, bolstered by increased subscriber numbers for Final Fantasy XIV and strong sales of the mobile title Romancing SaGa Re;universe.
• The company shifted its accounting policy in Q1 2020 to recognize digital content revenue in the same month it is earned, rather than with a one-month lag.

Financial Results Briefing Session: Three-Month Period Ended June 30, 2019

The financial results for Square Enix Holdings for the three-month period ended June 30, 2019, demonstrate a period of growth across all primary business segments.

• Square Enix reported a strong Q1 FY2020/3, with net sales increasing to 53.3 billion yen (up 8.6 billion yen YoY) and operating income rising to 7.1 billion yen (up 3.3 billion yen YoY).
• The Digital Entertainment segment, the company's primary driver, saw net sales grow to 37.1 billion yen and operating income reach 7.6 billion yen, representing a 20.5% operating margin.
• MMO performance improved YoY due to an increase in paying subscribers ahead of the 'FINAL FANTASY XIV: Shadowbringers' expansion launch.

Square Enix Holdings Consolidated Financial Results: Three-Month Period Ended June 30, 2019

Square Enix Holdings reported consolidated financial results for the three-month period ending June 30, 2019, demonstrating strong top-line growth despite a decline in net profit.

Square Enix Holdings Financial Results Briefing: Fiscal Year Ended March 31, 2019

Square Enix Holdings reported financial results for the fiscal year ended March 31, 2019, characterized by a divergence between top-line growth and bottom-line contraction.

Square Enix Holdings Financial Results: Fiscal Year Ended March 31, 2019

Square Enix Holdings reported financial results for the fiscal year ended March 31, 2019, reflecting a period of revenue growth tempered by declining operating margins.

• Square Enix reported net sales of 271.0 billion yen for the fiscal year ended March 31, 2019, but operating income fell significantly to 24.5 billion yen, down from 38.1 billion yen in the previous year.
• The Digital Entertainment segment, the company's largest revenue driver, saw operating income drop from 43.4 billion yen to 29.0 billion yen, resulting in an operating margin contraction of 8.5 percentage points to 14.2%.
• Digital sales in the HD games segment have grown by an annual average of approximately 40% over the past five years, with digital downloads accounting for 40% of total HD sales in FY2019/3.