Financial Results Briefing Session: Fiscal Year Ended March 31, 2020

The financial results for the fiscal year ended March 31, 2020, reflect a period of strategic transition for Square Enix Holdings Co., Ltd. Despite a slight decline in consolidated net sales to 260.5 billion yen from 271.2 billion yen in the previous year, the company achieved a notable improvement in profitability. Operating income rose to 32.7 billion yen, up from 24.6 billion yen, resulting in an operating income margin of 12.6%. This performance was driven by strong growth in the Publication and Smart Device/PC Browser segments, which helped offset a decline in the HD Games division.

The Digital Entertainment segment remained the primary revenue driver, though performance varied by sub-sector. While the HD Games division faced an operating loss due to a difficult year-over-year comparison and valuation losses on content production accounts, the MMO and Smart Device/PC Browser segments saw significant gains. Specifically, the release of expansion packs for major MMO titles and the success of mobile games like "Dragon Quest Walk" and "Romancing SaGa Re;univerSe" bolstered earnings. Additionally, the Publication segment experienced sharp growth in digital sales, while the Merchandising segment benefited from new products featuring key intellectual properties.

Looking forward, the company has established mid-term targets aiming for net sales of 300–400 billion yen and operating income of 40–50 billion yen. Strategic priorities include increasing the digital sales ratio, expanding cloud-based gaming, and leveraging multi-platform distribution. However, the company refrained from providing specific earnings forecasts for the fiscal year ending March 31, 2021, citing the significant uncertainty caused by the COVID-19 pandemic, which poses risks to development timelines, global demand, and the operation of physical amusement facilities.