Revision of Consolidated Financial Results for the First-Half Period Ended September 30, 2007

Square Enix Co., Ltd. issued a revision to its consolidated financial results for the first-half period ending September 30, 2007, following an adjustment in accounting related to its subsidiary, Taito Corporation. The primary purpose of this update is to reflect a decrease of ¥813 million in the allowance for game arcade closings, which directly resulted in an equivalent increase in net income for the period.

The financial results for the first half of the 2007 fiscal year show net sales of ¥72,271 million, representing a 4.9% decline compared to the same period in the previous year. Despite the decrease in sales, operating income rose to ¥9,752 million, a 6.4% increase. Net income for the period reached ¥5,211 million, reflecting a 57.0% increase over the prior year’s first-half results. The company maintained a solid financial position with total assets of ¥211,223 million and an equity ratio of 63.6%.

The scope of these financial statements covers the company’s consolidated operations, including segments such as offline and online games, mobile phone content, publications, and the amusement business managed by Taito. Geographically, the data encompasses operations in Japan, North America, Europe, and Asia. The reported figures are based on consolidated accounting standards, with the revision necessitated by a subsequent event involving contractual amendments for arcade facility closures. This adjustment highlights the impact of restructuring activities within the amusement segment on the company’s overall bottom line.