Financial Results Briefing Session: Six-Month Period Ended September 30, 2024

Square Enix Holdings Co., Ltd. reported its first-half financial results for the six months ended September 30, 2024, highlighting a mixed performance across its core business segments. Net sales fell 14.5 billion yen (8.4%) to ¥172.0 bn, driven mainly by a 23.9 billion yen decline in Digital Entertainment sales and a modest increase in Amusement revenue. Operating income, however, rose 3.8 bn yen (21%) to ¥17.3 bn, reflecting lower amortization of development costs and reduced advertising spend in Digital Entertainment, as well as stronger same-store sales in Amusement. The operating margin improved from 10.1% to 13.4%, a 3.3-percentage-point gain, while the overall profit attributable to owners of parent increased by 4.9 bn yen (29%) to ¥16.6 bn.

Segment-level details show Digital Entertainment’s HD Games unit posting a net loss of ¥1.2 bn, yet the MMO sub-segment generated an operating income of ¥13.1 bn, up 3.8 bn yen from the prior year. Amusement sales climbed to ¥36.2 bn, up 4.8 bn yen, driven by higher same-store traffic. Publication sales rose modestly to ¥14.8 bn, with digital sales accounting for 56% of total publication revenue. Merchandising revenue increased to ¥9.6 bn, supported by new character merchandise from key IPs such as “NieR:Automata.”

Balance-sheet metrics remained solid, with total assets at ¥412.2 bn and net assets rising 9.1% to ¥326.2 bn, despite a slight decline in cash and deposits. Currency fluctuations contributed to a net income dip, but overall profitability improved, positioning the company for continued international expansion and product launches in 2025.