Final Fantasy XIV

Square Enix Holdings 1Q FY2018/3 Financial Results Briefing

Square Enix Holdings reported strong financial growth for the first quarter of the fiscal year ending March 31, 2018.

• Square Enix reported strong 1Q FY2018/3 results with net sales of ¥57.0 billion (+11.3% YoY) and operating income of ¥12.8 billion (+43.9% YoY).
• The Digital Entertainment segment drove performance with ¥44.1 billion in sales (+17.7% YoY) and ¥13.7 billion in operating income (+44.9% YoY).
• Growth in the Games for Smart Devices/PC Browsers sub-segment was bolstered by license fees from Machine Zone, Inc. for 'FINAL FANTASY XV: A NEW EMPIRE' and the full amortization of development costs for existing titles.

Square Enix Holdings Three-Month Period Ended June 30, 2017: Reference Materials

Square Enix Holdings reported strong financial growth for the first quarter of the fiscal year ending March 31, 2018, covering the period from April 1 to June 30, 2017.

Square Enix Holdings Consolidated Financial Results: Three-Month Period Ended June 30, 2017

Square Enix Holdings reported strong financial growth for the three-month period ending June 30, 2017, driven primarily by robust performance in its Digital Entertainment segment.

• Square Enix reported strong growth for the three-month period ended June 30, 2017, with net sales rising 11.3% to ¥57,000 million and operating income increasing 43.9% to ¥12,874 million compared to the same period in 2016.
• The Digital Entertainment segment was the primary growth driver, achieving ¥44,168 million in net sales and ¥13,724 million in operating income, representing year-on-year increases of 17.7% and 44.9% respectively.
• Digital Entertainment performance was bolstered by strong download sales of catalogue titles like 'NieR:Automata,' consistent success from smart device games such as 'FINAL FANTASY BRAVE EXVIUS,' and increased revenue from 'FINAL FANTASY XIV' following its latest expansion.

U.K. Road Show Material: February 2017

The February 2017 investor presentation outlines a mid-term growth strategy for Square Enix, centered on achieving six consecutive years of sales growth through the expansion of its Digital Entertainment segment.

• Square Enix aims to reach 400 billion JPY in sales by fiscal year 2019, targeting six consecutive years of growth in its Digital Entertainment segment.
• The company is prioritizing profitability in its high-definition (HD) gaming division while maintaining a stable revenue foundation through MMOs and smart device games.
• Strategy focuses on three pillars: enhancing digital sales via a new global website, maximizing multi-platform accessibility across consoles, PC, and mobile, and expanding IP into merchandising and publishing.

Consolidated Financial Results for the Three-Month Period Ended June 30, 2015: Square Enix Holdings

Square Enix Holdings reported strong financial growth for the three-month period ending June 30, 2015, driven primarily by the robust performance of its Digital Entertainment segment.

• Square Enix reported strong Q1 growth for the period ending June 30, 2015, with net sales reaching ¥42,282 million (up 12.0% YoY) and operating income rising 56.1% to ¥7,912 million.
• The Digital Entertainment segment, the company's primary revenue driver, saw net sales increase 29.2% to ¥30,297 million and operating income jump 81.6% to ¥8,191 million.
• Digital Entertainment growth was fueled by strong performance in smartphone and PC browser titles like 'DRAGON QUEST MONSTERS SUPER LIGHT' and 'FINAL FANTASY RECORD KEEPER,' alongside steady results from 'FINAL FANTASY XIV' and 'DRAGON QUEST X'.

Financial Results: Fiscal Year Ended March 31, 2015

The financial results for Square Enix Holdings for the fiscal year ended March 31, 2015, demonstrate a period of significant growth and operational recovery.

• Square Enix reported strong fiscal growth for the year ending March 31, 2015, with net sales rising 8.3% to 167.9 billion yen and operating income increasing 55.8% to 16.4 billion yen.
• The Digital Entertainment segment served as the primary revenue driver, generating 111.9 billion yen in sales and 17.3 billion yen in operating income.
• Performance was bolstered by the stable revenue streams of MMO titles, specifically Final Fantasy XIV and Dragon Quest X, alongside growth in the smart device market.

Financial Results: Six-Month Period Ended September 30, 2014

Square Enix Holdings Co., Ltd. reported strong financial growth for the six-month period ending September 30, 2014, driven by a robust performance in its Digital Entertainment segment.

• Square Enix reported strong growth for the six-month period ending September 30, 2014, with net sales rising to 73.1 billion yen (up 11.5 billion yen) and operating income doubling to 8.5 billion yen compared to the same period in 2013.
• The company raised its full-year fiscal forecast for March 31, 2015, projecting net sales between 150–160 billion yen and operating income between 11–16 billion yen.
• Digital Entertainment remains the primary revenue driver, with a projected fiscal year operating income of 14.1 billion yen and a 14.1% operating margin.

Square Enix Annual Report FY2014

Square Enix achieved a significant financial recovery during the fiscal year ended March 31, 2014, returning to profitability with a net income of ¥6.5 billion following substantial losses the previous year.

• Square Enix returned to profitability in FY2014 with a net income of ¥6.5 billion and net sales of ¥155 billion, recovering from substantial losses in the previous fiscal year.
• The Digital Entertainment segment served as the primary growth engine, generating over ¥94 billion in revenue through the success of Final Fantasy XIV: A Realm Reborn and mobile titles like Dragon Quest Monsters Super Light.
• The company shifted to a digital-first strategy, prioritizing cloud gaming, variable pricing, and shorter development cycles to reduce reliance on traditional console disc distribution.

Square Enix Holdings Financial Results Briefing: FY2014/3

Square Enix achieved a financial turnaround for the fiscal year ended March 31, 2014, reporting net sales of ¥155 billion and an operating income of ¥10.5 billion.

• Square Enix achieved a financial turnaround for FY2014/3, reporting ¥155 billion in net sales and ¥10.5 billion in operating income.
• The company's recovery was driven by the strong performance of Final Fantasy XIV, a shift to PC-first development in Western studios, and an accelerated transition to mobile gaming.
• Management projects a conservative outlook for FY2015/3, with net sales estimated between ¥140 billion and ¥150 billion and operating income between ¥5 billion and ¥10 billion.

Square Enix Holdings Consolidated Financial Results: Nine-Month Period Ended December 31, 2013

Square Enix Holdings’ consolidated financial results for the nine-month period ending December 31, 2013, demonstrate a significant turnaround in profitability compared to the same period in the previous fiscal year.

• Square Enix returned to profitability for the nine-month period ended December 31, 2013, reporting a net income of ¥5,179 million compared to a net loss of ¥5,745 million in the same period of the previous year.
• The Digital Entertainment segment achieved an operating income of ¥6,796 million, a significant turnaround from the ¥392 million operating loss recorded in the prior year's nine-month period.
• Total consolidated net sales remained nearly flat at ¥102,473 million, a marginal decrease of 0.3% year-over-year.

Square Enix Holdings Financial Results Briefing: Six-Month Period Ended September 30, 2013

Square Enix Holdings reported its financial results for the six-month period ending September 30, 2013, highlighting a return to profitability and a strategic pivot toward online-based gaming models.

• Square Enix returned to profitability for the six-month period ending September 30, 2013, reporting net sales of ¥61.66 billion and an operating income of ¥4.68 billion.
• The successful launch of Final Fantasy XIV: A Realm Reborn was a primary growth driver, surpassing the peak subscriber count of Final Fantasy XI.
• The company is executing a strategic shift from traditional fixed-price console games toward variable earnings models, specifically subscription-based and free-to-play services.

Financial Results for the Six-Month Period Ended September 30, 2013

Square Enix Holdings Co., Ltd. reported a return to profitability for the six-month period ending September 30, 2013, following a loss in the same period of the previous year.

• Square Enix returned to profitability for the six-month period ending September 30, 2013, reporting 4.7 billion yen in operating income compared to a 5.2 billion yen loss in the same period of 2012.
• The launch of 'FINAL FANTASY XIV: A REALM REBORN' on August 27, 2013, was a major driver, achieving approximately 1.45 million total units sold and surpassing 600,000 paying users.
• The company is executing a strategic shift toward online-based titles and variable earnings models, exemplified by the development of the F2P battle action game 'Nosgoth'.