Square Enix Financial Results Briefing Session: Nine-Month Period Ended December 31, 2024

The financial results for the nine-month period ending December 31, 2024, provide an overview of Square Enix’s performance across its core business segments. The company reported consolidated net sales of 248.5 billion yen and an operating income of 33.3 billion yen, representing a year-over-year decline in both metrics. Despite these decreases, the company maintained an operating income margin of 13.4 percent, reflecting a stable, albeit slightly lower, profitability profile compared to the same period in the previous fiscal year.

The Digital Entertainment segment, which serves as the primary revenue driver, experienced a notable decline in net sales and operating income. While the High-Definition (HD) games sub-segment saw profit growth—largely attributed to the successful launch of Dragon Quest III HD-2D Remake—and the Massively Multiplayer Online (MMO) segment benefited from the Final Fantasy XIV: Dawntrail expansion, these gains were offset by a sharp downturn in the Games for Smart Devices/PC Browser category. This decline was driven by the underperformance of existing titles, the absence of royalty revenue recognized in the prior year, and a valuation write-down in content production accounts.

Performance across other segments was mixed. The Amusement segment reported growth in both net sales and operating income, bolstered by strong same-store sales and arcade machine performance. Conversely, the Publication segment experienced a slight decline, attributed to a year-over-year fallback in sales for The Apothecary Diaries following its peak popularity during the previous year’s anime broadcast. The Merchandising segment performed well, achieving year-over-year growth in both sales and profit through the successful release of character merchandise tied to key intellectual properties. Overall, the company’s financial position remains robust, with total assets increasing to 421.5 billion yen as of December 31, 2024.