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Square Enix Q3 FY3/2022 Results

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Square Enix Holdings announced the financial results for the nine-month period ending December 31, 2021. Figures in millions of yen

Key figures:
9 months actual

Net Sales: 273,627 (12/21), 253,643 (12/20). YoY change: 7.9%
Operating Income: 50,138 (12/21), 41,022 (12/20), YoY change 22.2%
Ordinary Income: 54,441 (12/21), 38,703 (12/20), YoY change 40.7%
Profit attributable to owners of parent: 39,844 (12/21) 18,731 (12/20) YoY change 116.9%
EPS, basic: 333.44 yen (12/21), 153.96 yen (12/20)

Full year:
Net Sales: 340,000 (forecast ending 3/22), 332,532 (actual ended 3/21), YoY change 2.2%
Operating Income: 50,000 (forecast ending 3/22), 47,226 (actual ended 3/21), YoY change 5.9%
Ordinary Income: 50,000 (forecast ending 3/22), 49,983 (actual ended 3/21), YoY change 0.0%
Profit attributable to owners of parent: 35,000 (forecast ending 3/22), 26,942 (actual ended 3/21), YoY change 29.9%
EPS, basic : 292.90 yen (forecast ending 3/22), 225.75 yen (actual ended 3/21)

Full information here: https://www.hd.square-enix.com/eng/ir/pdf/22q3earnings.pdf

In the Digital Entertainment segment, the HD Games sub-segment in the nine month period ending December 31, 2021 had releases such as Outriders, Nier Replicant, and Marvel's Guardians of the Galaxy. However, the net sales of this sub-segment had declined compared with the same period the previous year which had Final Fantasy VII Remake and Marvel's Avengers. In the MMO sub-segment, sales rose compared to previous year thanks to Final Fantasy XIV which not only had a rise in subscribers but also an expansion pack. The Games for Smart Devices/PC Browser sub-segment had somewhat weak performance from existing titles but it's net sales rose due to changes in accounting.

In the Amusement segment, compared to the same period in the previous year, the nine month period ending December 31,2021 saw net sales rise and a turn towards profit at the operating line. Previous year had substantial impact from COVID. In the Publication segment,sales of e-books and other digital media rose in the nine month period ending December 31, 2021. Sales of printed media were solid, resulting in higher net sales and operating income than same period in the previous year. Merchandising segment also saw increase in net sales and operating income than same period in the previous year.


EDIT: https://www.hd.square-enix.com/eng/news/pdf/22q3_220204en.pdf

Square Enix revised their operating income forecast for FY3/2022 due to the number of paying subscribers for Final Fantasy XIV, expansion pack sales of that as well as merchandise sales. As stated above, 50 billion yen is what they currently forecast. It was previously 40 billion yen. Ordinary Income and Profit attributable to owners of parent were also revised higher because the yen had been weaker than expected.
 
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Digital Entertainment segment operating income YoY increase of 17% seems really solid. FFXIV seems to have done most the work since they said HD Games and Games for Smart Devices either declined or were weak.
 
I'll leave it to others if they want to post charts in this thread. Tweet of one of the slides from the Financial Results.



Japan only had a small decline in digital net sales. Final Fantasy XIV definitely pulling its weight.
 
I'll leave it to others if they want to post charts in this thread. Tweet of one of the slides from the Financial Results.



Japan only had a small decline in digital net sales. Final Fantasy XIV definitely pulling its weight.

FFXIV's gains are likely more outside Japan (where we're also seeing WOW's fall in tandem). Within Japan I'd imagine DQX was a much bigger contributor, where it also just got a major expansion.
 
I'll leave it to others if they want to post charts in this thread. Tweet of one of the slides from the Financial Results.



Japan only had a small decline in digital net sales. Final Fantasy XIV definitely pulling its weight.

would mobile also be counted as digital?
 
would mobile also be counted as digital?
Mobile is counted in the Smart Devices/Browser PC sub-segment. Those charts are for HD games plus MMO sub-segments. (Feel free to correct me if wrong)

EDIT: Mobile revenue just under combined revenue for HD Games + MMO
 
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I'll leave it to others if they want to post charts in this thread. Tweet of one of the slides from the Financial Results.



Japan only had a small decline in digital net sales. Final Fantasy XIV definitely pulling its weight.


Final Fantasy XIV has definitely become their perennial cash cow and has been pulling its weight - and the weight of various other Square-Enix projects, past and future - for some time now.

Recent FF history tells us that every two entries we get a numbered MMO, but I don't think XIV is going anywhere, no matter what happens with FFXVII.

Mobile is counted in the Smart Devices/Browser PC sub-segment. Those charts are for HD games plus MMO sub-segments. (Feel free to correct me if wrong)

EDIT: Mobile revenue just under combined revenue for HD Games + MMO


Holy fuck. Do they tell us what title/titles they attribute this to the most?
 
I think the game was confirmed to be a flopped.

As far as I know, no specific game sales were mentioned. Neo TWEWY was confirmed a flop by Square Enix last year iirc.

I know it has been confirmed to be a flop by SE (although seeing their past expectations with other titles like Tomb Raider…) but I wanted to know if they mentioned any sales number.

Hoping the game reaches 1 million units even if it’s with better discounts (iirc the game has reached half price). More people need to play this game!
 
Added a little more information to the end of the OP since I hadn't checked the IR page to see if I had missed something. The article at RPG Site informed me that I had and so I added the information. Definitely will make sure I check the IR page to be sure I have the pdfs when Q4 FY3/2022 results come around.

 
Outline of Q3 Financial Results briefing

On page 3, Yosuke Matsuda discussed HD Games for Q3 FY3/2022 and says "The HD Games sub-segment launched Marvel's Guardians of the Galaxy in Q3. Despite strong reviews, the game undershot our initial expectations.". He notes that they started some sales initiatives in November 2021 for it, and this has brought growth to the title and they will continue to work on expanding sales to make up for its slow start.

EDIT: Q&A on page 8 has a question on why Final Fantasy VII Integrade was a Epic Games Store exclusive.
 
EDIT: Q&A on page 8 has a question on why Final Fantasy VII Integrade was a Epic Games Store exclusive.
Q: What feedback have you gotten on the Epic Games Store version of “FINAL FANTASY VII REMAKE INTERGRADE,”
which you launched in December 2021? Also, why have you only offered it via the Epic Games Store?
A: We have seen a fair response. I cannot go into the specific reasons why we chose the Epic Games Store, but our decision
was the outcome of our comparative analysis of a variety of different factors.
I see the question but there's no answer 🤔
bugs-bunny-looney-tunes.gif
 
Within this same 9 month time period, we now know that Outriders did not make any profit for Square Enix as the developers have not received any royalty payments for the game.


https://peoplecanfly.com/wp-content/uploads/2022/04/directors-report-on-the-operations-2021.pdf (page 19 has the received no royalties for the period up to December 31, 2021 part)
 
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