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Square Enix Holdings
Square Enix Holdings reported a decline in financial performance for the three-month period ended June 30, 2025, compared to the same quarter in the previous fiscal year. Net sales for the quarter reached 59,275 million yen, representing a 15.2% year-on-year decrease. Operating income fell by 16.8% to 9,018 million yen, while profit attributable to owners of the parent dropped by 54.8% to 4,804 million yen. This significant decline in bottom-line profit was exacerbated by a foreign exchange loss of 2,147 million yen, driven by the strengthening of the Japanese yen.
The company operates across four primary segments: Digital Entertainment, Amusement, Publication, and Merchandising. The Digital Entertainment segment, the company's largest, saw net sales decline by 25.0% to 32,918 million yen, largely due to lower sales of new titles in the HD Games sub-segment compared to the previous year. Conversely, the Amusement segment demonstrated growth, with net sales rising 8.5% to 16,461 million yen and operating income increasing 19.0% to 1,775 million yen, supported by higher same-store sales and increased demand for arcade prize items. The Publication and Merchandising segments both experienced moderate declines in revenue and operating income.
Despite these results, the company maintained its consolidated full-year forecasts for the fiscal year ending March 31, 2026, which project net sales of 280,000 million yen and operating income of 41,000 million yen. The financial position remains stable, with an equity ratio of 81.7% as of June 30, 2025. Additionally, the company confirmed plans for a three-for-one stock split effective October 1, 2025, which has been factored into future earnings per share projections.