Square
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Square Enix Holdings Financial Results: Fiscal Year Ended March 31, 2013
The financial results for the fiscal year ended March 31, 2013, reflect a period of significant operational challenge for Square Enix Holdings, characterized by a transition from profitability to a consolidated operating loss.
- Square Enix reported a net loss of 13.7 billion yen for the fiscal year ended March 31, 2013, a significant decline from the 6.1 billion yen net profit recorded in the previous fiscal year.
- Operating income fell to a loss of 6.1 billion yen in FY2013, down from a 10.7 billion yen profit in FY2012, despite a 16% increase in net sales to 148 billion yen.
- The company is implementing a strategic overhaul of its HD segment, focusing on reducing long-term development cycles and shifting resources toward smart device platforms.
Square Enix Holdings Consolidated Financial Results: Fiscal Year Ended March 31, 2013
Square Enix experienced a period of significant financial contraction during the fiscal year ending March 31, 2013, marked by a transition from profitability to substantial losses.
- Square Enix reported a net loss of ¥13,714 million for the fiscal year ended March 31, 2013, a significant decline from the ¥6,060 million net income recorded in the previous fiscal year.
- Operating income swung from a profit of ¥10,713 million in 2012 to an operating loss of ¥6,081 million in 2013, despite a 15.7% increase in net sales to ¥147,981 million.
- The company attributed the net loss to extraordinary charges resulting from strategic initiatives, including development policy changes, organizational reforms, and business model redesigns.
Square Enix Holdings: Briefing Session of Revisions to Consolidated Results Forecasts
Square Enix faces a severe financial downturn for the 2013 fiscal year, shifting from an initial operating profit projection of ¥7.5 billion to a realized operating loss of ¥6 billion and a net loss of ¥13 billion.
- Square Enix revised its FY2013 consolidated operating income forecast from a profit of ¥7.5 billion to a loss of ¥6.0 billion, a negative variance of ¥13.5 billion.
- The Digital Entertainment segment, specifically HD console games in North America and Europe, was the primary driver of the shortfall, contributing over ¥8 billion to the negative operating income variance.
- Key console titles including Sleeping Dogs, Hitman: Absolution, and Tomb Raider failed to meet internal sales targets, leading to additional costs from price protection and ineffective sales execution.
Briefing Session for Revisions to Consolidated Results Forecasts: Fiscal Year Ending March 31, 2013
Square Enix Holdings issued a significant downward revision to its consolidated earnings forecast for the fiscal year ending March 31, 2013, citing poor performance in its core Digital Entertainment segment.
- Square Enix revised its fiscal year 2013 forecast from a 3.5 billion yen profit to a 13 billion yen net loss, driven by poor performance in the Digital Entertainment segment.
- Operating income projections shifted from a 7.5 billion yen profit to a 6 billion yen loss, largely due to underperforming HD console titles in North American and European markets.
- Major titles including Sleeping Dogs, Hitman: Absolution, and Tomb Raider failed to meet unit sales targets, with North American sales volume reaching only two-thirds of European levels.
Square Enix Holdings Nine-Month Period Ended December 31, 2012: Reference Materials
The financial performance of Square Enix Holdings for the nine-month period ending December 31, 2012, reveals a significant shift from profitability to loss compared to the same period in the previous year.
- Square Enix Holdings reported a net loss of 5.7 billion yen for the nine-month period ending December 31, 2012, a significant reversal from the previous year's profitability.
- Despite a 7.4% increase in net sales to 102.8 billion yen, the company incurred an operating loss of 4.9 billion yen compared to the 11.2 billion yen operating income recorded in the prior year.
- The Digital Entertainment division, the company's largest revenue source at 57.8 billion yen, failed to remain profitable, posting an operating loss of 0.4 billion yen.
Square Enix Holdings Consolidated Financial Results: Nine-Month Period Ended December 31, 2012
Square Enix Holdings reported a significant downturn in financial performance for the nine-month period ending December 31, 2012.
- Square Enix reported a net loss of ¥5,745 million for the nine-month period ended December 31, 2012, a sharp decline from the ¥5,013 million profit recorded during the same period in 2011.
- Operating income swung from a profit of ¥11,220 million in 2011 to an operating loss of ¥4,853 million in 2012, despite a 7.4% increase in net sales to ¥102,794 million.
- The Digital Entertainment segment, the company's primary business, failed to achieve expected returns due to difficult conditions in the global console game market, resulting in an operating loss.
Square Enix Holdings Results Briefing Session: First Six-Month Period Ended September 30, 2012
Square Enix faced a difficult financial period during the first half of the fiscal year ending September 30, 2012, characterized by a net loss of ¥5,480 million and an operating loss of ¥5,240 million.
- Square Enix reported a net loss of ¥5,480 million and an operating loss of ¥5,240 million for the first half of the fiscal year ending September 30, 2012.
- The company halved its full-year operating income forecast from ¥15 billion to ¥7.5 billion due to poor performance in the Amusement segment and the unsuccessful launch of Final Fantasy XIV.
- Western-developed HD titles acted as a financial buffer, highlighted by the success of Sleeping Dogs, which reached 2.5 million unit shipments.
FY2013 First Quarter Financial Results
GREE’s financial results for the first quarter of fiscal year 2013 reveal a period of strategic transition and global expansion.
- GREE reported Q1 FY2013 net sales of 37.9 billion yen, a 25% year-over-year increase despite a 5% sequential decline.
- Operating profit fell 17% sequentially to 15.7 billion yen, driven by higher labor costs and international expansion investments.
- The company is pivoting toward smartphone native applications and leveraging major IP through partnerships with Konami, Square Enix, and NCSoft for titles like Metal Gear Solid and Final Fantasy.
Results Briefing Session for the Six-Month Period Ended September 30, 2012
The results briefing for the six-month period ended September 30, 2012, provides an overview of Square Enix Holdings’ financial performance and strategic direction across its core business segments.
- Square Enix projected a significant shift in HD game sales for the fiscal year ending March 2013, with North American and European markets expected to reach 7.6 million and 7.3 million units respectively, while Japanese sales are forecast to decline to 3.9 million units.
- The title 'Sleeping Dogs' emerged as a key driver in the company's own-IP strategy, achieving 1.51 million units shipped and ranking as a top-class new IP in North America over the preceding year.
- Digital Entertainment revenue is increasingly diversified across HD games, MMOs, and social gaming, with the company actively managing a portfolio of social games that includes both profitable and currently unprofitable titles.
Square Enix Holdings Consolidated Financial Results: Six-Month Period Ended September 30, 2012
Square Enix Holdings reported a challenging financial performance for the six-month period ended September 30, 2012, characterized by a transition from profitability to a net loss.
- Square Enix reported a net loss of ¥5,480 million for the six-month period ended September 30, 2012, a significant decline from the ¥3,704 million net profit recorded in the same period of 2011.
- Consolidated operating income swung from a profit of ¥7,391 million in 2011 to an operating loss of ¥5,240 million in 2012, despite a 6.2% increase in net sales to ¥61,055 million.
- The Digital Entertainment segment, the company's primary business, recorded an operating loss of ¥2,088 million compared to an operating profit of ¥7,781 million in the prior year, driven by rising development costs for PC and smartphone content.
Financial Results for the Three-Month Period Ended June 30, 2012: Square Enix Holdings Co., Ltd.
Square Enix Holdings Co., Ltd. provides a financial overview for the three-month period ending June 30, 2012, detailing the company's consolidated performance and strategic outlook.
- Square Enix reported total consolidated net sales of 24.9 billion yen and an operating income of 1.2 billion yen for the quarter ending June 30, 2012.
- Net income reached 2.8 billion yen and recurring income rose to 3.5 billion yen, representing a significant year-over-year improvement.
- The Digital Entertainment segment served as the primary revenue driver with 11.3 billion yen in net sales, followed by the Amusement segment at 10.0 billion yen.
Square Enix Holdings Consolidated Financial Results: Three-Month Period Ended June 30, 2012
Square Enix Holdings reported its consolidated financial results for the three-month period ending June 30, 2012, reflecting a challenging start to the fiscal year.
- Square Enix reported a consolidated net loss of ¥2,077 million for the three-month period ended June 30, 2012, a significant decline from the ¥690 million net income recorded in the same period of 2011.
- Operating income swung from a profit of ¥2,178 million in Q1 2011 to an operating loss of ¥1,163 million in Q1 2012, despite a slight 1.6% increase in net sales to ¥24,914 million.
- The Digital Entertainment segment, the company's largest division, reported an operating loss of ¥111 million compared to a profit of ¥2,834 million in the prior year, driven by weak console game sales.
