Square Enix Q3 FY3/2025 Financial Results (Oct - Dec 2024) | Ordinary income down 7.7% vs 9...

The Square Enix group (the “Group”) is continuing determined efforts to strengthen the competitiveness and profitability of its business segments of Digital Entertainment, Amusement, Publication and Merchandising. Net sales for the Nine-Month period ended December 31, 2024 totaled ¥248,519 million (a decrease of 3.5％from the same period of the prior fiscal year), and operating income amounted to ¥33,381 million (a decrease of 4.4％ from the same period of the prior fiscal year). In foreign exchange rates, the weakness of Japanese yen compared to rates as of the end of the prior fiscal year resulted in the booking of a foreign exchange gain amounting to ¥3,129 million. As a result, ordinary income amounted to ¥37,759 million (a decrease of 7.7％ from the same period of the prior fiscal year), and profit attributable to owners of parent amounted to ¥24,718 million (a decrease of 7.7％ from the same period of the prior fiscal year).

Click to expand...

The Digital Entertainment segment consists of planning, development, distribution, and operation of digitalent ertainment content primarily in the form of game. Digital entertainment content is offered to meet customer lifestyles across a variety of usage environments such as consumer game consoles (including handheld game machines), personal computers and smart devices. The HD (High-Definition) Game sub-segment’s net sales for the nine-month period ended December 31,2024 declined compared with the same period of the previous fiscal year as new titles generated lower salesthan releases such as “FINAL FANTASY XVI,” ”FINAL FANTASY PIXEL REMASTER,” and “Dragon QuestMonsters: The Dark Prince” had the previous year. However, sub-segment operating income increased mainly due to lower development cost amortization and advertising expenses compared with the same period of the previous year, as well as stronger sales of the November 2024 release “DRAGON QUEST III HD-2D Remake” than initially assumed. In the MMO (Massively Multiplayer Online) Game sub-segment, net sales and operating income rose compared with the same period of the previous fiscal year on the launch of “FINAL FANTASY XIVawntrail,” the latest expansion pack for “FINAL FANTASY XIV.” In the Games for Smart Devices/PC Browser sub-segment, net sales and profits declined compared with the same period of the previous fiscal year despite the launch of “Emberstoria” in November 2024. This was due to weakness in existing titles, the recognition of royalty revenue in the previous fiscal year, and a valuation write-down associated with the content production account. Net sales and operating income in the Digital Entertainment segment totaled ¥160,386 million (a decrease of 10.7％ from the same period of the prior fiscal year), and ¥27,689 million (a decrease of 9.9％ from the same period of the prior fiscal year), respectively.

Click to expand...