Final Fantasy

Square Enix Holdings Q1-Q3 FY2022/3 Financial Results Briefing

Square Enix Holdings reported strong financial growth for the first nine months of the fiscal year ending March 31, 2022.

• Square Enix reported strong growth for the first nine months of FY2022/3, achieving ¥273.6 billion in net sales and ¥50.1 billion in operating income, representing year-over-year increases of ¥20 billion and ¥9.1 billion, respectively.
• The Digital Entertainment segment generated ¥211.6 billion in net sales, primarily driven by the strong performance of Final Fantasy XIV’s MMO subscriber growth and expansion packs.
• The HD games sub-segment experienced a year-over-year sales decline due to a lack of major title launches compared to the previous period, while several new smartphone titles underperformed expectations.

Financial Results Briefing Session: Nine-Month Period Ended December 31, 2021

The financial results for Square Enix Holdings for the nine-month period ending December 31, 2021, demonstrate a period of growth across all primary business segments.

• Square Enix reported strong growth for the nine-month period ending December 31, 2021, with net sales reaching 273.6 billion yen and operating income rising to 50.1 billion yen, up from 41.0 billion yen in the same period the previous year.
• Digital Entertainment remains the core revenue driver, with digital sales accounting for 191.4 billion yen of the segment's 211.6 billion yen total, significantly outpacing physical packaged sales.
• The Amusement segment successfully returned to profitability, generating 1.3 billion yen in operating income compared to a loss in the prior year, as arcade operations recovered from pandemic-related closures.

Square Enix Holdings 2Q FY2022/3 Financial Results Briefing

Square Enix Holdings reported financial results for the first half of the fiscal year ending March 31, 2022, reflecting a period of mixed performance across its business segments.

• Square Enix reported net sales of ¥168.9 billion and operating income of ¥29.1 billion for the first half of FY2022/3, marking year-over-year declines of ¥3.8 billion and ¥2.5 billion, respectively.
• Net income attributable to parent company shareholders increased by ¥6.9 billion to reach ¥22.9 billion compared to the same period in the previous year.
• The Digital Entertainment segment saw a decline in performance as growth in the MMO sub-segment from Final Fantasy XIV subscriptions was offset by underperforming HD Games and a weak release schedule for smart device and browser titles.

Square Enix Holdings Financial Results: Six-Month Period Ended September 30, 2021

Square Enix Holdings reported financial results for the six-month period ending September 30, 2021, reflecting a period of year-over-year decline in net sales and operating income.

• Square Enix reported a consolidated net sales decline to 168.9 billion yen for the first half of FY2022/3, down from 172.7 billion yen in the same period of the previous year.
• Operating income for the Digital Entertainment segment fell from 33.8 billion yen to 29.4 billion yen, driven by a difficult year-over-year comparison due to the previous launch of 'Final Fantasy VII Remake' and underperformance in mobile and PC browser titles.
• Total unit sales for digital and physical games dropped significantly to 17.22 million units in 1H FY2022/3, compared to 30.30 million units in the same period of the prior year.

Square Enix Holdings Consolidated Financial Results: Three-Month Period Ended June 30, 2021

The consolidated financial results for the three-month period ended June 30, 2021, reflect a period of mixed performance for the group, characterized by a slight increase in net sales alongside a significant decline in operating income.

• Square Enix reported net sales of ¥88,604 million for the three-month period ended June 30, 2021, a 1.8% increase year-on-year, while operating income fell 29.5% to ¥17,316 million.
• The Digital Entertainment segment, the company's primary revenue driver, saw net sales decline 6.0% to ¥69,876 million and operating income drop 34.2% to ¥17,147 million.
• The Amusement segment recovered significantly, reporting ¥9,452 million in net sales—a 105.4% increase—and an operating profit of ¥344 million, compared to an operating loss of ¥1,512 million in the same period last year.

Square Enix Holdings 1-3Q FY2021/3 Financial Results Briefing

Square Enix Holdings reported strong financial performance for the first three quarters of the fiscal year ending March 31, 2021, characterized by significant growth in its Digital Entertainment and Publication segments.

Nexon FY2020 Q4 Earnings Conference Call: Q&A Summary

The Nexon FY2020 Q4 earnings conference call provides a strategic overview of the company’s performance, focusing on its transition from a traditional game developer to a virtual worlds operator.

• Nexon’s flagship title, Dungeon&Fighter in China, saw a 30% year-over-year sales decline in Q1 2021 and a significant drop in Monthly Active Users from 27.4 million in Q4 2019 to 17.3 million in Q4 2020.
• Management is pivoting the company's strategy from traditional game development to operating virtual worlds, treating existing intellectual property as long-term assets similar to physical theme parks.
• Future growth depends on three key upcoming releases: the mobile version of Dungeon&Fighter, KartRider: Drift, and an unannounced project from Embark Studios.

Square Enix Holdings Financial Results: Nine-Month Period Ended December 31, 2020

Square Enix Holdings reported strong financial growth for the nine-month period ending December 31, 2020, characterized by significant increases in net sales and operating income compared to the same period in the previous fiscal year.

• Square Enix reported a strong nine-month performance ending December 31, 2020, with net sales reaching 253.6 billion yen and operating income rising to 41.0 billion yen, a significant increase from 27.7 billion yen in the same period the previous year.
• The Digital Entertainment segment drove growth through major HD game releases like 'FINAL FANTASY VII REMAKE' and 'Marvel's Avengers,' alongside strong performance in smart device and PC browser titles such as 'DRAGON QUEST WALK' and 'DRAGON QUEST TACT.'
• The Amusement segment suffered a sharp decline, recording an operating loss due to COVID-19-related facility closures through mid-June 2020, with quarterly net sales bottoming out at 4.6 billion yen in Q1 FY2021/3.

Square Enix Holdings 2Q FY2021/3 Financial Results Briefing

Square Enix Holdings reported strong financial growth for the first half of the fiscal year ending March 31, 2021, driven primarily by robust performance in its Digital Entertainment segment.

Square Enix Holdings Financial Results: Six-Month Period Ended September 30, 2020

Square Enix Holdings reported strong financial growth for the six-month period ending September 30, 2020, characterized by a significant increase in net sales and operating income despite the global challenges posed by the COVID-19 pandemic.

• Square Enix reported strong growth for the six-month period ending September 30, 2020, with net sales reaching 172.7 billion yen, a 52 billion yen increase compared to the same period in 2019.
• Operating income rose to 31.6 billion yen, representing an 18.3% operating margin, up from 13.2% in the previous year's first half.
• The Digital Entertainment segment drove performance, with games for smart devices and PC browsers seeing significant gains from titles including 'DRAGON QUEST WALK,' 'WAR OF THE VISIONS: FINAL FANTASY BRAVE EXVIUS,' and 'DRAGON QUEST TACT.'

Square Enix Holdings 1Q FY2021/3 Financial Results Briefing

Square Enix Holdings reported strong financial performance for the first quarter of the fiscal year ending March 31, 2021, driven primarily by robust growth in its Digital Entertainment segment.

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.

• Square Enix reported a significant year-on-year increase in Q1 FY2021/3 performance, with net sales rising to 87.0 billion yen and operating income reaching 24.5 billion yen, up from 53.3 billion yen and 7.1 billion yen respectively in the same period last year.
• The Digital Entertainment segment drove the majority of growth, with operating income surging to 26.0 billion yen, fueled by strong digital sales of 'FINAL FANTASY VII REMAKE' and increased monthly subscribers for 'FINAL FANTASY XIV'.
• Total game units sold (discs and downloads) nearly doubled year-on-year, growing from 3.25 million units in Q1 FY2020/3 to 6.21 million units in Q1 FY2021/3.