Square Enix Financial Results Briefing Session: Three-Month Period Ended June 30, 2024

Square Enix’s financial results for the first quarter of the fiscal year ending March 31, 2025, reflect a period of strategic transition characterized by a decline in net sales alongside a significant improvement in operating profitability. Total net sales for the quarter reached 69.9 billion yen, down from 85.6 billion yen in the same period of the previous year. Conversely, operating income rose to 10.8 billion yen, up from 3.0 billion yen, driven by disciplined cost management and reduced amortization expenses within the Digital Entertainment segment.

The Digital Entertainment division, the company’s primary revenue driver, experienced a year-over-year decline in net sales to 43.9 billion yen, largely attributed to the absence of major HD game title launches during the quarter. Despite this, the segment’s operating income improved to 9.7 billion yen due to lower advertising and development costs. Within this segment, the MMO sub-segment performed well, generating 12.5 billion yen in sales, while the mobile and browser games sector saw sales decline to 18.9 billion yen. Total unit sales for HD and MMO games combined reached 4.39 million units, a decrease from 7.54 million units in the prior year’s first quarter.

Other business segments provided stable contributions to the group’s performance. The Amusement segment saw growth, with net sales reaching 15.1 billion yen, supported by an increase in same-store sales. The Publication segment also reported gains, with net sales rising to 6.9 billion yen, bolstered by strong performance in both digital and print comic sales. The Merchandising segment saw a slight dip in sales to 4.4 billion yen, though operating income increased due to a favorable shift in the product sales mix. The company maintains a cautious outlook, emphasizing that these results are subject to market volatility and the successful execution of its upcoming release pipeline.