Square Enix Holdings Consolidated Financial Results: Three-Month Period Ended June 30, 2022

Square Enix Holdings’ consolidated financial results for the three-month period ending June 30, 2022, reflect a period of operational transition and shifting segment performance. The company reported net sales of ¥74,876 million, a 15.5% decrease compared to the same period in the previous year, and operating income of ¥14,430 million, down 16.7%. Despite these declines in core operations, ordinary income rose by 48.7% to ¥26,255 million, and profit attributable to owners of the parent increased by 45.0% to ¥18,355 million. These bottom-line gains were primarily driven by a significant foreign exchange gain of ¥13,055 million resulting from the depreciation of the Japanese yen.

Performance across business segments was mixed. The Digital Entertainment segment, the company’s primary revenue driver, saw a 23.3% decline in net sales, attributed to lower earnings from new high-definition game titles compared to the prior year’s release schedule, though the Massively Multiplayer Online (MMO) sub-segment experienced growth due to increased subscribers for Final Fantasy XIV. Conversely, the Amusement segment performed strongly, with net sales and operating income rising by 26.7% and 231.1%, respectively, fueled by a recovery in same-store sales. The Publication and Merchandising segments showed varied results, with Publication experiencing a decline in both print and digital sales, while Merchandising saw a revenue increase despite a slight dip in operating income.

The company maintains a strong financial position with an equity ratio of 76.7%. However, full-year consolidated forecasts for the fiscal year ending March 31, 2023, remain undetermined. This uncertainty stems from the ongoing assessment of the financial impact following the announced divestiture of select overseas studios and intellectual properties. The company intends to provide updated forecasts once the implications of this transaction are fully calculated.