Square Enix Holdings Financial Results: Fiscal Year Ended March 31, 2013

The financial results for the fiscal year ended March 31, 2013, reflect a period of significant operational challenge for Square Enix Holdings, characterized by a transition from profitability to a consolidated operating loss. While net sales grew by 16% to 148.0 billion yen compared to the previous year, the company reported an operating loss of 6.1 billion yen and a net loss of 13.7 billion yen. This downturn was primarily driven by the Digital Entertainment segment, which saw its operating income drop from 12.6 billion yen in the prior year to zero, alongside a decline in the Amusement segment.

To address these results, the company has initiated a strategic overhaul focused on improving development turnover for large-scale, long-term projects and pivoting toward the rapidly expanding smart device market. Management aims to construct a product portfolio tailored to specific regional consumer preferences to regain international competitiveness. These efforts are part of a broader business transformation intended to restore operating income to a target level of 25 billion yen.

Looking ahead to the fiscal year ending March 31, 2014, the company projects a return to profitability, with forecasted consolidated net sales between 140.0 and 150.0 billion yen and operating income between 5.0 and 9.0 billion yen. The company has also established a dividend policy targeting a consolidated payout ratio of 30%, with a lower limit of 10 yen per share. Leadership changes, including the appointment of Yosuke Matsuda as President and Representative Director, underscore the company's commitment to executing these strategic shifts and stabilizing financial performance.