Square Enix Holdings
Square Enix Holdings is the Japanese holding company of the Square Enix video game group. It publishes financial filings, results briefing materials and reference materials for investors.
Documents
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 Holdings Three-Month Period Ended June 30, 2014: Reference Materials
The Square Enix Holdings financial report for the three-month period ending June 30, 2014, details a significant improvement in fiscal performance compared to the same quarter in the previous year.
- Square Enix reported a strong start to the fiscal year ending June 30, 2014, with net sales increasing to 37.8 billion yen from 24.1 billion yen in the same period the previous year.
- Operating income saw a significant surge to 5.1 billion yen for the quarter, compared to 0.7 billion yen in the prior-year period, driven largely by a 19.2% operating margin in the Digital Entertainment segment.
- The Digital Entertainment segment was the primary growth driver, with net sales more than doubling to 23.5 billion yen and operating income rising to 4.5 billion yen from 1.3 billion yen year-over-year.
Square Enix Holdings Consolidated Financial Results: Three-Month Period Ended June 30, 2014
Square Enix Holdings reported strong financial growth for the three-month period ending June 30, 2014, signaling a significant recovery compared to the same period in the previous fiscal year.
- Square Enix reported a strong financial turnaround for the three-month period ended June 30, 2014, with net sales of ¥37,754 million (up 56.8% year-on-year) and net income of ¥3,408 million, compared to a net loss of ¥493 million in the same period of 2013.
- Operating income surged 634.9% to ¥5,068 million, driven primarily by the Digital Entertainment segment, which saw net sales jump 102.6% to ¥23,450 million.
- The Digital Entertainment segment's growth was fueled by the release of 'MURDERED: SOUL SUSPECT,' strong repeat sales of previous titles, and the performance of mobile games like 'DRAGON QUEST MONSTERS SUPER LIGHT' and 'SCHOOLGIRL STRIKERS.'
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.
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'.
Square Enix Holdings Consolidated Financial Results: Six-Month Period Ended September 30, 2013
The Square Enix Holdings consolidated financial results for the six-month period ending September 30, 2013, demonstrate a significant recovery in profitability compared to the same period in the previous fiscal year.
- Square Enix returned to profitability for the six-month period ended September 30, 2013, reporting a net income of ¥2,606 million compared to a net loss of ¥5,480 million in the same period of the prior year.
- Consolidated net sales reached ¥61,664 million, a 1.0% increase year-on-year, while operating income swung to a profit of ¥4,675 million from an operating loss of ¥5,240 million in 2012.
- The Digital Entertainment segment, the company's primary business, generated ¥30,636 million in sales and achieved an operating profit of ¥3,456 million, driven by strong North American console sales and the successful August 2013 launch of 'FINAL FANTASY XIV: A REALM REBORN'.
Square Enix Holdings: Three-Month Period Ended June 30, 2013
The financial results for Square Enix Holdings for the three-month period ending June 30, 2013, demonstrate a shift toward profitability compared to the same period in the previous fiscal year.
- Square Enix returned to profitability for the quarter ended June 30, 2013, reporting an operating income of 0.7 billion yen compared to a 1.2 billion yen loss in the same period the previous year.
- Net sales for the three-month period were 24.1 billion yen, a slight decrease from the 24.9 billion yen reported in the same quarter of 2012.
- The Digital Entertainment segment was the primary revenue driver, contributing 11.6 billion yen in net sales and 1.3 billion yen in operating income for the quarter.
Square Enix Holdings Consolidated Financial Results: Three-Month Period Ended June 30, 2013
Square Enix Holdings reported consolidated financial results for the three-month period ending June 30, 2013, reflecting a period of structural transition and strategic realignment within the global gaming industry.
- Square Enix reported a net loss of ¥493 million for the three-month period ended June 30, 2013, an improvement from the ¥2,077 million loss recorded in the same period of the prior fiscal year.
- Operating income reached ¥689 million, driven by a recovery in the Digital Entertainment segment, which posted an operating profit of ¥1,318 million compared to a ¥111 million loss in the previous year.
- The company incurred an extraordinary loss of approximately ¥1.6 billion related to content evaluation, which significantly impacted the final net results.
Financial Results Briefing: Fiscal Year Ended March 2013
Square Enix concluded the fiscal year ending March 2013 with a net loss of ¥13.7 billion, a result primarily driven by declining profitability within its Digital Entertainment segment and elevated costs associated with advertising and sales return provisions.
- Square Enix reported a net loss of ¥13.714 billion for the fiscal year ended March 2013, a significant decline from the ¥6.1 billion net income recorded in the previous year.
- The company recorded an operating loss of ¥6.081 billion for the fiscal year ended March 2013, driven by poor performance in the Digital Entertainment segment and sluggish sales of arcade machines in the Amusement segment.
- Management identified the rigid, long-term development cycle of the packaged HD game business as a primary cause of poor profitability, noting that high-quality titles like 'Sleeping Dogs,' 'Hitman,' and 'Tomb Raider' failed to meet sales expectations.
Square Enix Holdings Financial Results: Fiscal Year Ended March 31, 2013
The financial results for the fiscal year ended March 31, 2013, reflect a period of significant operational challenge for Square Enix Holdings, characterized by a transition from profitability to a consolidated operating loss.
- Square Enix reported a net loss of 13.7 billion yen for the fiscal year ended March 31, 2013, a significant decline from the 6.1 billion yen net profit recorded in the previous fiscal year.
- Operating income fell to a loss of 6.1 billion yen in FY2013, down from a 10.7 billion yen profit in FY2012, despite a 16% increase in net sales to 148 billion yen.
- The company is implementing a strategic overhaul of its HD segment, focusing on reducing long-term development cycles and shifting resources toward smart device platforms.
Square Enix Holdings Consolidated Financial Results: Fiscal Year Ended March 31, 2013
Square Enix experienced a period of significant financial contraction during the fiscal year ending March 31, 2013, marked by a transition from profitability to substantial losses.
- Square Enix reported a net loss of ¥13,714 million for the fiscal year ended March 31, 2013, a significant decline from the ¥6,060 million net income recorded in the previous fiscal year.
- Operating income swung from a profit of ¥10,713 million in 2012 to an operating loss of ¥6,081 million in 2013, despite a 15.7% increase in net sales to ¥147,981 million.
- The company attributed the net loss to extraordinary charges resulting from strategic initiatives, including development policy changes, organizational reforms, and business model redesigns.
Square Enix Holdings: Briefing Session of Revisions to Consolidated Results Forecasts
Square Enix faces a severe financial downturn for the 2013 fiscal year, shifting from an initial operating profit projection of ¥7.5 billion to a realized operating loss of ¥6 billion and a net loss of ¥13 billion.
- Square Enix revised its FY2013 consolidated operating income forecast from a profit of ¥7.5 billion to a loss of ¥6.0 billion, a negative variance of ¥13.5 billion.
- The Digital Entertainment segment, specifically HD console games in North America and Europe, was the primary driver of the shortfall, contributing over ¥8 billion to the negative operating income variance.
- Key console titles including Sleeping Dogs, Hitman: Absolution, and Tomb Raider failed to meet internal sales targets, leading to additional costs from price protection and ineffective sales execution.