Square Enix Holdings Financial Results: Fiscal Year Ended March 31, 2021

Square Enix Holdings achieved record-high financial performance for the fiscal year ended March 31, 2021, driven primarily by the robust growth of its Digital Entertainment segment. Consolidated net sales reached 332.5 billion yen, an increase of 72 billion yen over the previous year, while operating income rose to 47.2 billion yen. This growth reflects an operating income margin of 14.2%, up from 12.6% in the prior fiscal year. The company’s financial position remained strong, with total assets increasing to 336.1 billion yen and cash and deposits rising to 146.2 billion yen.

The Digital Entertainment segment served as the primary growth engine, generating 263.9 billion yen in net sales and 50.5 billion yen in operating income. Performance was bolstered by the successful launch of multiple high-definition (HD) titles, consistent subscription revenue from massively multiplayer online (MMO) games, and strong results from smart device and PC browser titles. Conversely, the Amusement segment faced significant headwinds due to COVID-19-related facility closures, resulting in a decline in net sales to 34.3 billion yen and an operating loss of 1.5 billion yen. Meanwhile, the Publication and Merchandising segments both saw year-over-year growth, with Publication benefiting from a surge in digital manga sales and Merchandising leveraging key intellectual property.

Looking forward, the company aims to strengthen its IP ecosystem by balancing new IP creation with the multifaceted utilization of existing assets. Strategic priorities include expanding recurring revenue streams, exploring emerging technologies such as the metaverse and NFTs, and optimizing the business structure to ensure resilience in a post-pandemic environment. Despite the record results in 2021, management issued a conservative forecast for the fiscal year ending March 31, 2022, projecting net sales of 340 billion yen and a decline in operating income to 40 billion yen.