FinancialSquare Enix
Square Enix Annual Report FY2010
1 Jul 201068 pages~185 min full read
Square Enix achieved record financial performance in FY2010, with net sales rising 41.7% to ¥192.3 billion and operating income surging 130% to ¥28.2 billion.
See it on page 3The acquisition of Eidos Ltd. and the success of international titles like Final Fantasy XIII, Batman: Arkham Asylum, and Just Cause 2 increased overseas revenue from 16.5% to 26.6% of total sales.
See it on page 11Management initiated a strategic pivot toward a 'network-centric' model, prioritizing smartphone gaming, digital platforms, and user-generated data over traditional physical media.
See it on page 8The company underwent a major structural reorganization into a holding company format, which included merging Taito Corporation and Square Enix Co., Ltd. and reducing the net headcount by 457 employees.
See it on page 36Extraordinary losses of ¥17.9 billion, driven largely by ¥12.2 billion in goodwill amortization and Taito-related restructuring, resulted in a net income of ¥9.5 billion.
See it on page 32Square Enix maintained a strong liquidity position with ¥109.7 billion in cash and equivalents, supplemented by the issuance of ¥35 billion in convertible bonds.
See it on page 35Future growth strategy focuses on expansion into the Chinese market while maintaining a 42.3% consolidated payout ratio to ensure stable shareholder returns.
See it on page 7Square Enix achieved record financial performance for the fiscal year ended March 31, 2010, characterized by a 41.7% increase in net sales to ¥192.3 billion and a 130% surge in operating income to ¥28.2 billion. This growth was primarily driven by a successful globalization strategy and the integration of Eidos Ltd., which expanded the company’s consolidated subsidiaries from 16 to 46. High-performing international titles, including Final Fantasy XIII, Batman: Arkham Asylum, and Just Cause 2, were instrumental in raising overseas revenue from 16.5% to 26.6% of total sales.
The period marked a significant strategic pivot toward a "network-centric" business model. Management prioritized transitioning into a community platform operator, focusing on digital networks, smartphone gaming, and user-generated data over traditional physical media. To support this evolution, the company underwent a major structural reorganization into a holding company format, which included a net headcount reduction of 457 employees and the integration of amusement and software units through mergers involving Taito Corporation and Square Enix Co., Ltd.
Financial results were impacted by ¥17.9 billion in extraordinary losses, largely due to the ¥12.2 billion accelerated amortization of goodwill and restructuring costs related to Taito. Despite these charges, net income rose to ¥9.5 billion. The company maintained a strong liquidity position with ¥109.7 billion in cash and equivalents, supported by the issuance of ¥35 billion in convertible bonds to manage debt redemptions. Moving forward, the strategy emphasizes expansion into the Chinese market and a commitment to stable shareholder returns, maintaining a 42.3% consolidated payout ratio while targeting future net sales of ¥160 billion.
