Square Enix Holdings Consolidated Financial Results: Three-Month Period Ended June 30, 2024

Square Enix Holdings’ consolidated financial results for the three-month period ending June 30, 2024, reflect a strategic shift toward improved profitability despite a contraction in top-line revenue. The company reported net sales of ¥69,915 million, representing an 18.4% decline compared to the same period in the previous fiscal year. Conversely, operating income surged by 250.1% to ¥10,844 million, and profit attributable to owners of the parent rose by 68.6% to ¥10,620 million. This performance was bolstered by a foreign exchange gain of ¥4,912 million resulting from the depreciation of the Japanese yen.

The Digital Entertainment segment, the company’s primary revenue driver, experienced a 29.6% decline in net sales to ¥43,905 million, largely due to a lower volume of new high-definition game releases compared to the prior year. However, the segment’s operating income increased by 255.9% to ¥9,771 million, attributed to reduced development cost amortization and optimized operational expenses. Other business segments showed growth: the Amusement segment saw net sales rise by 13.9% to ¥15,177 million, while the Publication segment grew by 15.8% to ¥6,911 million, driven by strong performance in both digital and print comic sales.

The company maintains a stable financial position, ending the quarter with total assets of ¥413,270 million and an equity ratio of 78.5%. Management has confirmed that there are no changes to the previously announced full-year consolidated forecasts for the fiscal year ending March 31, 2025, which project net sales of ¥310,000 million and operating income of ¥40,000 million. The results were prepared in accordance with Japanese GAAP, incorporating minor updates to accounting standards regarding income taxes that had no material impact on the reported figures.