Financial Results Briefing Session: Three-Month Period Ended June 30, 2020

Square Enix Holdings reported strong financial growth for the first quarter of the fiscal year ending March 31, 2021, driven primarily by the robust performance of its Digital Entertainment segment. For the three-month period ended June 30, 2020, the company achieved net sales of 87.0 billion yen, a significant increase from the 53.3 billion yen recorded in the same period of the previous year. Operating income rose sharply to 24.5 billion yen, compared to 7.1 billion yen in the prior year, resulting in an operating income margin of 28.2 percent.

The Digital Entertainment segment served as the primary catalyst for this growth, with net sales reaching 74.3 billion yen. This performance was bolstered by high digital sales of major titles, most notably Final Fantasy VII Remake, alongside increased licensing income. The Massively Multiplayer Online (MMO) sub-segment also contributed positively, supported by a growing base of monthly paying subscribers for Final Fantasy XIV. Furthermore, games for smart devices and PC browsers saw improved results, aided by the earnings contributions of titles such as War of the Visions Final Fantasy Brave Exvius and Dragon Quest Walk. Total unit sales for the quarter reached 6.21 million units, nearly doubling the 3.25 million units sold in the same quarter of the previous year.

Conversely, the Amusement segment experienced a significant downturn, reporting an operating loss of 1.5 billion yen and a sharp decline in net sales to 4.6 billion yen. This underperformance was directly attributed to the temporary closure of amusement facilities in response to the COVID-19 pandemic. Meanwhile, the Publication and Merchandising segments both demonstrated year-over-year growth, with the former benefiting from increased digital manga and e-book sales, and the latter seeing success from merchandise featuring key intellectual properties. The company maintains a stable financial position, concluding the quarter with 118.4 billion yen in cash and deposits.