Final Fantasy

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.

FY2021 Presentation Material

CyberAgent achieved record-breaking financial performance in fiscal year 2021, characterized by consolidated sales of 666.4 billion yen and a more than threefold increase in operating profit to 104.3 billion yen.

• CyberAgent achieved record-breaking FY2021 performance with 666.4 billion yen in consolidated sales and a 104.3 billion yen operating profit, representing a more than threefold increase.
• The Game business was the primary profit driver, recording 68.6% year-over-year growth fueled by the commercial success of Uma Musume Pretty Derby.
• WINTICKET captured 25% of the Keirin online betting market and tripled its transaction volume, significantly contributing to reduced operating losses in the Media segment.

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.

3Q FY2021 Presentation Material: April to June 2021

CyberAgent experienced exceptional financial growth during the third quarter of fiscal year 2021, covering the period from April to June.

• CyberAgent’s consolidated sales grew 70.3% year-over-year to 192.2 billion yen in 3Q FY2021, with operating profit increasing more than fivefold to 44.5 billion yen.
• The 'Uma Musume Pretty Derby' game drove a 151.7% increase in gaming segment sales and a 480% surge in operating profit, reaching nine million downloads within five months of launch.
• Driven by the success of 'Uma Musume', CyberAgent revised its full-year forecasts upward to 650 billion yen in sales and 100 billion yen in operating profit.

Final Fantasy VII The First Soldier Closed Beta: First Impressions

Final Fantasy VII The First Soldier represents a strategic hybridization of the battle royale genre with established role-playing game mechanics.

• Final Fantasy VII The First Soldier hybridizes the Battle Royale genre with RPG elements, including a class system, magic materia, and PvE monster encounters within the Midgar setting.
• The game features a class-based progression system where players select active and passive skills, though the current implementation is considered relatively shallow compared to long-term progression models in competitors like Garena Free Fire or Zooba.
• Social and retention-driving features are critical for market success, as 100% of top-performing Battle Royale games currently utilize a Guild System, compared to only 50% overall popularity for the subgenre.

Final Fantasy VII: Breaking the Remake - Reboots, Remasters, and Remakes - Extra Credits

The gaming industry frequently revisits classic titles, employing three primary strategies: remasters, reboots, and remakes.

• The gaming industry categorizes title revisits into three distinct strategies: remasters (aesthetic updates), reboots (new narrative foundations), and remakes (modernized visuals and mechanics with original story retention).
• Final Fantasy VII Remake defies traditional definitions by functioning as a meta-textual narrative that diverges from the 1997 original's plot.
• Unlike a standard reboot, Final Fantasy VII Remake requires player familiarity with the original 1997 title to provide the necessary context for its narrative subversions.

2Q FY2021 Presentation Material: January to March 2021

CyberAgent experienced exceptional financial growth during the second quarter of fiscal year 2021, characterized by a 26.6% year-over-year increase in consolidated sales to 163.4 billion yen and a doubling of operating profit to 25.8 billion yen.

• CyberAgent’s consolidated sales grew 26.6% year-over-year to 163.4 billion yen in 2Q FY2021, with operating profit doubling to 25.8 billion yen.
• The Game business reached record quarterly sales of 63.9 billion yen, driven primarily by the launch of 'Uma Musume Pretty Derby,' which surpassed five million downloads in 45 days.
• Due to strong gaming performance, CyberAgent raised its full-year sales forecast to 600 billion yen and nearly doubled its projected operating profit range.

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.

• Square Enix reported net sales of ¥253.6 billion and operating income of ¥41 billion for the first three quarters of FY2021/3, marking year-over-year increases of ¥63.9 billion and ¥13.3 billion, respectively.
• The Digital Entertainment segment drove growth with ¥203.5 billion in net sales, fueled by the profitability of HD titles like Final Fantasy VII Remake and Marvel's Avengers, as well as strong performance in mobile and browser games.
• Net income attributable to parent company shareholders fell by ¥800 million to ¥18.3 billion, primarily due to foreign exchange losses and extraordinary costs from pandemic-related operational suspensions.

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.'