Square Enix Holdings Consolidated Financial Results: Nine Month Period Ended December 31, 2009

Square Enix Holdings reported strong financial growth for the nine-month period ending December 31, 2009, driven by the successful release of major titles and the strategic acquisition of Eidos Ltd. Net sales reached ¥135,431 million, representing a 30.9% increase over the same period in the previous year. Operating income saw a significant rise of 67.7% to ¥21,414 million, while net income grew by 48.2% to ¥7,797 million. These results reflect the company’s ongoing efforts to strengthen its business foundation and profitability following a corporate restructuring that established a new holding company structure in late 2008.

The Games segment served as the primary engine for this growth, with net sales climbing 97.0% to ¥72,972 million and operating income nearly doubling. Key titles such as Dragon Quest IX, Final Fantasy XIII, and Batman: Arkham Asylum were instrumental in these gains. Conversely, the Amusement segment faced challenges, with net sales declining 14.6% due to difficult market conditions for arcade facility operations. Other segments showed mixed performance: the Publication segment grew by 15.9% in net sales, while the Merchandising segment experienced a substantial 65.7% increase in sales, bolstered by the release of the Final Fantasy VII Advent Children Complete film.

Geographically, the company expanded its reach, with overseas sales accounting for 20.0% of total consolidated sales, up from 16.4% in the prior year. The acquisition of Eidos Ltd. significantly impacted the company’s asset structure, contributing to a 30.1% increase in non-current assets. Despite the robust performance during the nine-month period, the company maintained its previously announced consolidated forecasts for the full fiscal year ending March 31, 2010, projecting net sales of ¥180,000 million and net income of ¥10,000 million.